KAJANG — Prime Minister Datuk Seri Anwar Ibrahim has rejected calls for further fuel price reductions, warning that lowering pump prices beyond current subsidized levels would jeopardize Malaysia’s fiscal health and inflate national debt.PM Anwar Rejects Fuel Price Cuts; Cites RM40bil Subsidy Bill.
Anwar emphasized that the government already spends approximately RM40 billion annually on petrol and diesel subsidies, maintaining retail RON95 prices at RM1.99 per litre for citizens despite Malaysia importing nearly half of its petroleum needs.
“People ask why we do not reduce fuel prices further. But who is going to pay for it?” Anwar told civil servants during a Central Zone engagement session at Universiti Islam Selangor today.
“In countries such as Saudi Arabia, petrol now costs around RM2.40 to RM2.50 per litre, even though they are among the world’s largest oil producers. In Malaysia, every time you fill up your vehicle, there is a government subsidy involved,” he added, noting that past calls to reduce fuel to RM1.50 per litre occurred when oil in Saudi Arabia cost just 50 sen per litre.
The Prime Minister reiterated that current subsidies—restructured in July 2025 to cap RON95 at RM1.99 per litre for Malaysians while requiring non-citizens and large corporations to pay the market rate of RM2.60—strike an essential balance between managing cost of living and maintaining financial discipline.
Anwar added that Putrajaya must also service legacy financial commitments from previous administrations, including liabilities linked to 1Malaysia Development Bhd (1MDB), Felda, and Tabung Haji. Prudent fiscal management, he said, enabled the country to achieve a better-than-expected economic growth rate of 5.8 per cent.
The session was attended by Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar, Public Service Department director-general Tan Sri Wan Ahmad Dahlan Abdul Aziz, and Selangor Menteri Besar Datuk Seri Amirudin Shari.
