Malaysia’s fuel supply secure but finances continue to be strained to keep Budi95 at RM1.99 a litre – Anwar

Malaysian prime minister Datuk Seri Anwar Ibrahim has said that the country’s fuel supply remains secure, although rising global fuel prices continue to strain the government’s finances as it works to keep Budi95 petrol at RM1.99 a litre, Bernama reports.

“So, fuel supply is assured, but prices are rising. This is not a problem originating from us, but from external factors. That is why we are compelled to face the challenge of rising fuel prices,” he said in his speech at the natural resources and environmental sustainability ministry‘s monthly assembly today.

Despite higher shipping and insurance costs brought about by the West Asian conflict, which are affecting fuel prices, Malaysia is still able to secure sufficient supply thanks to good relations with Iran, Russia, Turkmenistan and Uzbekistan, Anwar said.

Malaysia’s fuel supply secure but finances continue to be strained to keep Budi95 at RM1.99 a litre – Anwar

“We are fortunate. Malaysia is among the ASEAN countries with a secure fuel supply. Malaysia still maintains RON 95 (petrol). We have only reduced the quota from 300 litres to 200 because we are burdened by the cost of subsidising petrol and diesel,” The Star quoted him as saying.

He added that Malaysia’s RM1.99-a-litre RON 95 petrol is among the world’s cheapest, beaten only by a few countries such as Brunei. “If (global) prices rise sharply, (government subsidies) could exceed RM6 billion a month. At current levels, it is about RM5 billion monthly – imagine, over 10 months, that is RM50 billion from government funds,” the prime minister said.

“I am using real-time data in Hormuz now. You can see the congestion there. The strait is narrow, making it difficult to ensure the safety of vessels, especially with pressure from the United States and Iran,” Anwar continued, adding that Malaysian vessels, including Petronas-operated ones, are among the many ships navigating the congested waters.

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