What was the surge in monthly fuel subsidy spending between Jan-Apr?

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Fuel Subsidy Spending Saw a Sharp Increase Between January and April

Monthly fuel subsidy spending experienced a significant surge, escalating from approximately RM800 million in January and February to around RM5 billion per month in March and April. This dramatic increase followed a spike in global oil prices attributed to the ongoing conflict between the United States and Iran, which began in late February.
Escalation of Subsidy Costs

The financial burden of fuel subsidies intensified considerably in the second quarter of the year. Data indicates that expenditure nearly sevenfold, from an average of just under RM800 million monthly in the first two months to an estimated RM5 billion monthly in March and April. This sharp rise directly correlates with the escalating global oil prices that followed the outbreak of the conflict.
Impact of Global Oil Prices

The conflict's impact on global energy markets, particularly the disruption around the Strait of Hormuz, has been a primary driver of increased oil prices. As Malaysia is a net importer of crude oil and heavily subsidises domestic fuel consumption, these higher international prices translate directly into greater subsidy expenditure for the government.
Projected Future Costs

If the current trend of high global oil prices persists, the overall fuel subsidy bill for Malaysia could reach an estimated RM40 billion by the end of 2026. This projection highlights the substantial financial implications of sustained volatility in the international oil market for the nation's economy.

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What was the surge in monthly fuel subsidy spending between Jan-Apr?

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