The government is prepared to absorb rising fuel subsidy costs of up to RM45 billion a year to shield Malaysians from the rising cost of living amid surging global crude oil prices, Prime Minister Datuk Seri Anwar Ibrahim said.
Anwar said the government remained committed to maintaining the price of RON95 petrol at RM1.99 per litre, despite international crude oil prices climbing to between US$120 and US$130 a barrel.
He said the move was intended to protect the well-being of Malaysians, particularly low- and middle-income groups, from the impact of rising fuel prices in the global market.
Anwar warned that if crude oil prices continued to rise, the government’s annual subsidy bill could reach between RM42 billion and RM45 billion.
“If we raise fuel prices in line with market rates, people would have to pay an additional RM2 or RM3 a day, at a minimum of RM5 daily,” he said.
“Imagine those who use more fuel to send their children to school and travel to work. That could mean an additional RM10 every day.
“It is better for the government to bear the burden than to burden the people, our parents,” he said.
He was speaking at the Sentuhan Kasih MADANI programme and the launch of the National Cost of Living Action Plan 2030 at the Hang Jebat Sports Complex in Krubong, Melaka, today.
