PETALING JAYA: The cost of petrol and diesel subsidies borne by the Malaysian Government has risen to RM6bil, says Amir Hamzah Azizan (pic).
According to Bernama, the Finance Minister II said that this amount was up from RM700mil before the war in the Middle East.
"Low supply, high demand, security threat, soaring delivery costs have caused global oil prices to rise sharply," he said.
However, Malaysia's fuel supply was more resilient than that of other nations, he said.
The government has created a buffer by maintaining targeted subsidies for RON95 and diesel at fixed prices, while aligning the prices of non-subsidised fuel with market rates to shield the public from the direct impact of the global energy crisis.
Amir Hamzah said the measure is crucial to protect critical sectors, including fishermen, public transport and eligible logistics vehicles, which continue to enjoy diesel at controlled rates.
"Critical sectors that still benefit from subsidised diesel, such as fishermen, continue to receive diesel at RM1.65.
"For land public transport vehicles, including school and express buses, ambulances and fire engines, the price is RM1.88 per litre, while eligible logistics vehicles and users in Sabah and Sarawak pay RM2.15 per litre," he said at a global energy crisis briefing on Friday (April 10).
He said current global price pressures stem from low supply relative to high demand, security threats, as well as rising shipping and insurance costs.
Amir Hamzah said Malaysia's fuel supply is more robust compared with other countries, with Petroliam Nasional Bhd (PETRONAS) and several other oil companies managing the nation's resources responsibly.
"We can see this through petrol stations that continue to operate. Malaysians can still purchase fuel. Some countries have already imposed rationing, and hundreds of petrol stations elsewhere have been closed due to supply shortages," he said.
He said the crisis should be viewed as an opportunity for Malaysia to continue strengthening its economic resilience and to seize the chance to become a more dynamic and progressive society.
"The people play an important role. This is the time for us to set aside our differences and choose unity in facing the crisis, including practising moderation in our daily lives.
"The government's priority at this time is to ensure a sufficient supply of fuel, energy, essential goods and medicines for the rakyat. At the same time, the government is striving to safeguard the national economy and protect the people," he said.
