THE Federal Government can continue sustaining the subsidy for RON95 petrol for now, but broader discussions will be needed to address the long-term impact of rising global fuel prices, said PM Anwar.
He said the government would maintain the current RM1.99 per litre price for the time being, with the subsidy expected to remain in place through April and May.
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“I will answer honestly — for now, we can still sustain it. In April we will hold on, and in May, In Shaa Allah (God willing), we will continue. However the government would eventually need to engage stakeholders in discussions on how to manage the growing cost of fuel subsidies. After that, we must call everyone to the table for discussions,” he said.
Anwar said that the government currently spends about RM2 billion a month, nationwide, to maintain the RM1.99 price for RON95 price ceiling, amounting to RM24 billion annually, which is fully borne by the federal government.
“For now, and for the next few months, we will maintain this RM1.99 Ron95 price, which means Malaysia continues to have among the lowest fuel prices in the world. Only Brunei has a slightly cheaper price.
“Prices have risen across other Association of Southeast Asian Nations countries, but Malaysia has maintained the RM1.99 rate.
“People should understand this because such information is not widely highlighted and does not attract much attention. We must explain it ourselves. We can compare fuel prices in Singapore — where while we sell petrol at RM1.99, prices there are now above RM10 per litre,” he said.
Anwar warned that escalating conflict in the Middle East could have serious global economic repercussions, including disruptions to vital shipping routes and rising prices of essential goods.
He said the conflict, which has also affected Palestine and Gaza Strip, must be viewed not only from a humanitarian perspective but also in terms of its wider economic implications.
“As an independent nation, Malaysia must speak up. A sovereign country cannot allow others to attack nations at will,” he said.
Anwar stressed that defending the principle of sovereignty was crucial, noting that Malaysia itself values its independence and would not accept foreign interference in its affairs.
He warned that the conflict could lead to the closure of the strategically important Strait of Hormutz, one of the world’s busiest maritime trade routes.
“The implications are more serious. When war occurs, the Strait of Hormuz could be closed. More than 400 ships carrying oil, gas and essential supplies would be held up, including large vessels transporting Malaysian crew members and Malaysian goods.
“How many ships? More than 400 — not small barges or boats, but large vessels.
“Disruptions along the route could delay deliveries of oil, gas and other essential commodities, while insurance costs for shipping could surge due to the heightened risk of attacks.
“When supplies are disrupted and shipping costs rise, the price of goods will inevitably increase,” he said.
Anwar also hoped that the ongoing regional conflict affecting global oil supply would be resolved peacefully.
“I pray that the war will end peacefully and that no countries will attack others, because the conflict now involves more than 10 countries,” he said.
He added that several international leaders had contacted Malaysia to exchange views on the situation, including King Salman of Saudi Arabia, the King of Qatar, the
King of Kuwait, and leaders from Iran, including its president and foreign minister.
He said Malaysia strongly opposes military attacks on sovereign nations, including the recent conflict involving Iran.
“Malaysia, as an independent nation, rejects any form of aggression or invasion by foreign powers, stressing that the principle of sovereignty must be respected by all countries.
“We oppose any country being attacked or conquered. When Malaysia — including Sabah and Sarawak — gained independence, our aim was clear: we wanted to be a free and sovereign nation,” he said.
Referring to the ongoing conflict, Anwar criticised the use of military force against Iran, saying attacks on another country and the killing of its leaders were unacceptable.
