BALLOONING FUEL BILL
Malaysia is now looking at spending up to RM6 billion monthly to keep the subsidies in place and avoid passing costs directly to households.
For now, authorities have pledged that fuel supply will remain intact through next month. The federal government has maintained a RM1.99 per litre ceiling price for subsidised RON95 fuel for all Malaysians, regardless of income.
Before the Middle East conflict broke out, the government initially planned to cut RON95 fuel subsidies for Malaysians in the top 15 per cent of the country’s income group.
But last September, it said it accepted the “trade-off” of not maximising the savings, acknowledging that Malaysia faced cost-of-living pressures.
State energy firm Petronas is now working to secure sufficient supply, said Akmal, noting that clearer plans for the months ahead are expected by mid-May.
He signalled that the government intends to narrow subsidy coverage, allowing wealthier Malaysians to absorb higher fuel costs.
“As we move along, I think we should even be more targeted to ensure the masses still enjoy the benefit, to ensure the cost remains stable,” he added.
“We can allow some segments in society to pass the cost to … those who can afford it at the higher levels.”
Such a move would mark a significant change in Malaysia’s subsidy framework, which has long been criticised for benefiting higher-income groups disproportionately while straining government finances.
