Will RON95 petrol subsidies continue despite market price hikes?

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RON95 Petrol Subsidies to Continue Despite Market Price Increases

Malaysia's RON95 petrol will continue to be sold at a subsidised price of RM1.99 per litre, even as global market prices for crude oil experience significant fluctuations. Prime Minister Datuk Seri Anwar Ibrahim announced that the government will maintain this subsidised rate under the Budi Madani programme, shielding consumers from the full impact of rising international oil costs. This commitment is part of a broader strategy to ensure national energy security amidst global market volatility.
Continued Subsidies for RON95 Petrol

The government has affirmed its commitment to maintaining the subsidised price of RON95 petrol at RM1.99 per litre for Malaysians. This decision, highlighted by Prime Minister Datuk Seri Anwar Ibrahim, will remain in effect despite the fact that the actual market price for petrol is considerably higher. The Budi Madani programme is the mechanism through which this subsidy is administered, aiming to alleviate financial pressure on the populace.
Assurance of Sufficient Petrol Supply

In parallel with the subsidy continuation, Malaysia's petrol supply has been confirmed as adequate. Prime Minister Anwar Ibrahim stated that checks conducted with Petronas, the national oil company, indicate sufficient petroleum product supplies within the country, extending at least until May 2026. This assurance aims to provide stability and confidence to the public regarding the availability of fuel.
Global Market Volatility and Its Impact

The announcement comes amid significant turbulence in global energy markets. Brent crude prices saw a sharp rise, reaching US$119 per barrel on March 9 before settling around US$90 per barrel. This volatility is largely attributed to disruptions in critical shipping routes like the Strait of Hormuz and the ongoing conflict in the Middle East, which create uncertainty in oil supply and pricing.
Malaysia's Position Amidst Global Uncertainty

Despite the volatile international landscape, Malaysia is positioned to manage its energy situation effectively. The Prime Minister attributed this to stable supply management practices and robust coordination with Petronas. He emphasised that strong governance and professional management are crucial elements in safeguarding the nation's energy security during periods of global instability, allowing the country to navigate these challenges.

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Will RON95 petrol subsidies continue despite market price hikes?

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