The Malaysian government is exploring alternative petroleum sources from Brazil and Canada as Brent crude hits USD100 per barrel, driving up subsidy costs. Fuel prices have increased, and the Budi95 subsidised petrol quota remains, with officials saying 90% of users won't be affected. Public reactions range from support for rationalisation to demands for equitable leadership and transparent use of saved funds.
The government is leveraging all available resources, including expertise from Petronas, to secure alternative petroleum sources from countries like Brazil and Canada. Prime Minister Anwar Ibrahim, who also serves as finance minister, expressed confidence that the Budi95 programme-a subsidised fuel initiative-can be sustained beyond May this year despite recent price adjustments.
Yesterday, he announced that the monthly quota for RON 95 petrol under Budi95 remains in effect, while unsubsidised RON 95 now costs RM3.87 per litre and RON 97 is priced at RM5.15 per litre, both having increased by 60 sen last week. Diesel prices also rose: Euro 5 B10 is now RM5.52 per litre and Euro 5 B7 is RM5.72 per litre.
Home Minister Datuk Seri Saifuddin Nasution Ismail stated today that 90% of Malaysians will not be affected by the quota adjustment, a view echoed by Treasury Secretary-General Datuk Johan Mahmood Merican, who noted that 90% of eligible Budi95 users consume less than 200 litres per month. The Ministry of Finance disclosed that subsidy expenditures for petrol and diesel have surged due to Brent crude oil reaching USD100 per barrel.
Two weeks ago, with Brent crude near USD90, subsidies were estimated at RM3 billion monthly. Public reaction has been mixed. Some commenters propose an odd-even vehicle plate scheme in urban areas with good public transport connectivity to reduce private car usage. Others criticize the government for what they see as contradictory policies: rationalising subsidies while allegedly considering higher quotas.
There are calls for leaders to lead by example-cutting MPs' transport allowances before asking citizens to use public transport. Many question the allocation of saved subsidy funds, asking whether they will fund schools, hospitals, and infrastructure. The debate underscores the tension between fiscal responsibility and public burden as fuel subsidy reforms move forward
Please follow us on Google to support usGovernment Policy Fuel Subsidies Budi95 Fuel Subsidy Petronas Brent Crude Malaysia RON 95 Diesel Prices Subsidy Rationalisation Public Transport
Malaysia Latest News, Malaysia Headlines
Similar News: You can also read news stories similar to this one that we have collected from other news sources.
China’s visa-free policies fuel inbound travel surgeJOHOR BARU: All eight MCA assemblymen-elect will begin serving their constituencies on Sunday (July 12), a day after the party doubled its tally in the Johor state election.
Read more »
Cuba Faces Recurring Nationwide Blackouts Amid Fuel Crisis and Aging Power InfrastructureCuba is experiencing severe and repeated electricity outages across the entire nation, with many residents enduring only limited power supply due to critical fuel shortages. The crisis, which has seen four major blackouts this year, is worsened by aging infrastructure and external pressures, including U.S. sanctions that disrupted Venezuelan oil supplies and prompted Mexico to stop shipments. Citizens report major economic and daily life disruptions, from spoiled food to halted businesses, as the government struggles to restore the national grid.
Read more »
Reducing fuel prices not as easy as people think and involves substantial expenditure, says PM AnwarPrime minister Datuk Seri Anwar Ibrahim has said that reducing fuel prices involved substantial expenditure and it is not as easy as people think, reports NST. Speaking at the recent Sentuhan Sahabat Madani Bukit Batu …
Read more »
Gov't to discuss alleged petrol station losses during fuel subsidy transition with oil companies - AnwarIt was reported back in December 2024 that some 3,500 petrol stations in Peninsular Malaysia sustained losses amounting to RM181 million when diesel was first floated in June 2024. Now, according to Ipoh Timur MP …
Read more »