The government’s bill on
fuel subsidies is expected to surge to RM40 billion for 2026 due to elevated
energy prices following the conflict in West Asia.
For January and February,
RM800 million per month was forked out to subsidise fuel prices, before surging
to around RM5 billion a month for March and April. This was stated by the Prime
Minister in a parliamentary written reply recently.
Malaysia subsidises
petrol and diesel, allowing eligible Malaysians to buy RON95 petrol at a
subsidised price of RM1.99 per litre and diesel at a subsidised price of RM2.10
a litre. Crude oil prices spiked during the West Asia conflict. During the
conflict, benchmark Brent crude oil hit a peak of US$144.50 per barrel on April
7. Pre-war, it stood between US$70 and US$80 per barrel.
While still volatile,
tensions between the US and Iran have tempered. A ceasefire is in place as the
two countries hold peace negotiations.
Reference:
Fuel subsidy bill expected to hit RM40b for 2026, Izzul Ikram and Timothy Achariam, theedgemalaysia.com, 1 July 2026
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