M’sia can maintain RON95 price for up to two months, says PM


PUTRAJAYA: Malaysia can still maintain the subsidised RON95 petrol price at RM1.99 per litre for up to two months, said Datuk Seri Anwar Ibrahim.

But the Prime Minister warned that the prolonged closure of the Strait of Hormuz could cause an unprecedented economic crisis.

He said everyone, including the public and private sectors, must be wary of the ongoing conflict in Iran.

"We will try to control the effects of the Iranian conflict, including for RON95, which is RM1.99 per litre," he told reporters after performing Friday prayers at a surau in a mall on Friday (March 6).

"We will monitor this situation because so far, we can still hold off for one or two months."

Anwar noted that the early signs were not good or pleasant.

"So, I urge everyone, including the civil service, workers and businesses to be wary of this situation," he said.

"Do not take this lightly."

Anwar Ibrahim said the effects of the attacks by the United States (US) and Israel against Iran on the economy and regional geopolitics are still under control.

However, Anwar noted that the 200 vessels currently stuck at the Strait of Hormuz will have an effect on trade and the economy.

"It will also lead to higher transportation costs as vessels are taking a longer route," he said.

"Surely, the government will take immediate measures because the economic effects from the prolonged situation cannot be avoided."

He added that the cost of goods, imports for small and medium enterprises (SMEs) and food prices are also expected to increase.

Anwar said the current global situation should not be sugar-coated by anyone and urged for solutions before the situation worsens.

"Let’s be honest, sincere and clear to the community. We must monitor the situation and let us not be complacent as if nothing is happening," he said.

"We must be careful beginning from now."

The Strait of Hormuz is the only sea passage from the Gulf, making it one of the most vital strategic checkpoints in the world.

It is estimated that 20% of the global oil supply passes through these waters.

The Strait of Hormuz was closed by Iran on Monday (March 2) following the US and Israeli attacks.

Finance Minister II Datuk Seri Amir Hamzah Azizan also said on Friday (March 6) that the government will hold off on raising the official 2026 growth projection of 4% to 4.5% due to growing uncertainty over the Middle East conflict.

 

 

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