KAJANG: Prime Minister Datuk Seri Anwar Ibrahim has defended Malaysia's fuel prices amid calls to lower them, saying the government already spends RM40bil annually on fuel subsidies.
The Prime Minister said Putrajaya could not afford to increase the country's debt, which should not continue to pile up.
"As for fuel prices, I do not know why I keep seeing people on social media saying that I have not lowered fuel prices," he said during a meet-and-greet session with the Universiti Islam Selangor community here on Monday (July 20).
"I don't understand it. They say fuel prices should be reduced to RM1.50 per litre, but I say that when we first proposed RM1.50, petrol in Saudi Arabia cost about 50 sen per litre.
"Today, petrol in Saudi Arabia costs around RM2.40 to RM2.50 per litre.
"Saudi Arabia is the largest petroleum producer in the world and has excess production capacity, yet petrol there costs RM2.40 per litre."
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Anwar, who is also Finance Minister, said Malaysia imports around 50% of its petroleum needs, yet continues to sell RON95 petrol at RM1.95 per litre through government subsidies.
"Do you know how much the government spends each year on petrol and diesel subsidies? RM40bil. Every time you fill up your tank, the government is subsidising the cost.
"People can say fuel prices should be lowered further, but then who is going to pay for it?
"I don't want the country's debt to keep piling up," he said.
Anwar also said Malaysia's economy remained in a relatively stronger position than many of its neighbours.
