KUALA LUMPUR: Fuel subsidy spending is set to nearly hit RM40bil in 2026, more than double the RM15bil originally allocated under the budget for 2026, says Datuk Seri Anwar Ibrahim.
The Prime Minister said the government spent almost RM800mil a month on RON95 petrol and diesel subsidies in January and February, before rising sharply to about RM5bil a month in March and April.
“If current market prices persist, the government is expected to spend close to RM40bil to subsidise petroleum products for 2026,” said Anwar, who is also the Finance Minister, in a parliamentary written reply to Temerloh MP Salamiah Mohd Nor.
She had asked the Finance Ministry to state the latest allocation for petrol and diesel subsidies, and to list other parties that receive subsidies apart from individual Malaysians.
According to Anwar, the increase in subsidy allocation allows Malaysian citizens aged 16 and above to continue enjoying subsidised RON95 petrol at RM1.99 per litre.
The targeted assistance is extended to key groups including fishermen, farmers, public transport operators and selected logistics sectors, he said.
Fishermen receive subsidised diesel at RM1.65 per litre, while more than 210,000 farmers and smallholders benefit from increased Budi Agri-Komoditi cash aid of RM400 a month, up from RM200.
At the same time, targeted groups such as boat operators, and users of generators and water pump for household use in rural areas, who require diesel for daily needs, are also eligible for Budi Diesel through the MyKad mechanism.
Eligibility is subject to conditions set by state governments and their agencies, including the Sabah Ports and Harbours Department, Sarawak Rivers Board, Resident offices, district offices or State Economic Planning Units, Anwar said.
He also assured that Malaysia’s petroleum supply remains stable and sufficient.
“The government will continue to strengthen long-term supply security measures and targeted subsidies amid an ongoing global supply crisis.
“The government’s priority is to ensure the people remain protected if the crisis persists, particularly those most affected by cost-of-living pressures and global price increases.
“The government will continue to monitor its fiscal position and subsidy capacity to ensure assistance can be delivered in a sustainable and targeted manner,” Anwar added.
