The government’s petroleum subsidy bill is projected to reach RM40 billion this year as a global supply crisis drives crude oil prices above US$120 per barrel.
Prime Minister Datuk Seri Anwar Ibrahim said monthly subsidies for petrol, diesel and liquefied petroleum gas (LPG) rose sharply from about RM800 million in January and February to nearly RM5 billion in March and April.
The monthly burden subsequently eased to around RM3 billion between June and August.
Anwar, who is also finance minister, said the government was taking a balanced approach to shield Malaysians from rising fuel prices while maintaining the country’s fiscal sustainability.
In a written parliamentary reply, he said the government had reprioritised its annual spending to focus on programmes with the greatest impact on the public and the economy.
He added that the review considered the operational needs and priorities of each ministry, with essential services and high-impact programmes — including education, healthcare and financial assistance — remaining protected.
Anwar was responding to Datuk Seri Mohd Shafie Apdal (Warisan-Semporna), who had sought details on petroleum subsidies.
He said the government would strengthen fiscal discipline by tightening operating expenditure, improving public spending efficiency and reducing leakages in the implementation of programmes and subsidies.
Enforcement would also be stepped up to ensure assistance and subsidies reached eligible recipients, helping to optimise the use of public funds.
Anwar said the government would continue balancing the need to protect Malaysians from rising fuel prices with prudent spending, ensuring higher subsidy costs could be absorbed without undermining the country’s fiscal sustainability.
