MELAKA: The government is prepared to absorb an increase in fuel subsidy costs, which could reach RM45bil annually amid a surge in global crude oil prices.
Prime Minister Datuk Seri Anwar Ibrahim said the government would maintain the price of RON95 petrol at RM1.99 per litre while international crude oil prices climb to between US$120 and US$ 130 a barrel.
"If oil prices continue to surge, the cost borne by the government could reach between RM42bil and RM45bil a year. If we raise fuel prices in line with market rates, people would have to pay an additional RM2 or RM3, or at least RM5 a day," he said.
He was speaking at the 'Sentuhan Kasih Madani' Programme and the launch of the National Cost of Living Action Plan 2030 at the Hang Jebat Sports Complex in Krubong here on Saturday (Oct 24).
