Anwar says government prepared to cover RM45 billion fuel subsidy bill
The government remains committed to keeping RON95 petrol at RM1.99 per litre despite higher international crude prices, the prime minister said.
Malaysia is prepared to bear a potential RM45 billion annual fuel subsidy bill rather than increase prices for consumers, Prime Minister Datuk Seri Anwar Ibrahim said in Melaka on Oct 24.
Anwar said further oil price increases could push yearly subsidy spending to between RM42 billion and RM45 billion. He cited international crude prices of between US$120 and US$130 a barrel, against around US$70 a barrel previously.
He reiterated the government's commitment to the RM1.99 per litre price for RON95 petrol. Bearing the subsidy costs was intended to limit pressure on household spending, particularly among low- and middle-income groups, he said.
The remarks accompanied the launch of the National Cost of Living Action Plan 2030 during the ‘Sentuhan Kasih Madani’ Programme at the Hang Jebat Sports Complex in Krubong.
Responding to criticism that generous subsidies encouraged dependence on state assistance, Anwar said policy needed to reflect the circumstances of lower-income households. He also argued that growth, investment and trade figures alone were insufficient measures of economic success; improvements in people's living standards and well-being mattered too.
