PUTRAJAYA: Malaysia’s fuel supply remains secure despite rising global oil prices driven by external factors, says Prime Minister Datuk Seri Anwar Ibrahim.
He said the country was fortunate to be among the Asean nations with a stable oil supply, even as it grapples with price increases linked to international developments beyond its control.
"We are fortunate. Malaysia is among the Asean countries with a secure fuel supply.
"The rise in prices is not caused by us, but by what is happening globally, and we must manage it," he said in his speech at the Natural Resources and Environmental Sustainability Ministry's monthly assembly here on Monday (May 4).
He stressed that Putrajaya continues to maintain subsidies, particularly for RON95 petrol, which remains among the lowest-priced fuels in the world.
"Malaysia still maintains RON95. We have only reduced the quota from 300 litres to 200 litres because we are burdened by the cost of subsidising petrol and diesel," he said.
Anwar warned that subsidy costs could surge significantly if global oil prices spike further, adding that the government is already spending about RM5bil monthly under current price levels.
"If prices rise sharply, it could exceed RM6bil a month. At current levels, it is about RM5bil monthly – imagine, over 10 months, that is RM50bil from government funds," he said.
He added that Malaysia’s RON95 price of RM1.99 per litre remains among the lowest globally, surpassed only by a handful of countries such as Brunei.
Highlighting geopolitical risks, Anwar said real-time data showed congestion in the Strait of Hormuz, a key global shipping route, where tensions between the United States and Iran are complicating maritime security.
"I am using real-time data in Hormuz now. You can see the congestion there.
"The strait is narrow, making it difficult to ensure the safety of vessels, especially with pressure from the United States and Iran," he said.
He said Malaysian vessels, including those operated by PETRONAS, are among the many ships navigating the congested waters.
