THE escalating tensions in the Middle East are likely to hurt the pockets of the Malaysian government. With oil prices rising due to the fighting, Malaysia’s fuel subsidy bill is set to rise by billions of ringgit.
The rising energy prices will also put to test Tenaga Nasional Bhd
’s relatively new automatic fuel adjustment (AFA) system, which has only delivered rebates since its introduction in July 2025, potentially pushing up electricity prices in Peninsular Malaysia.
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