The surge in global oil prices brought about by the Middle East conflict pushed Malaysia’s monthly fuel subsidy bill to as high as RM7.5 billion at one point in April, said finance minister II Datuk Seri Amir Hamzah Azizan.
He said the subsidy bill had spiked from about RM700 million a month in January and February to RM5 billion in March, before peaking in April, although the amount has since moderated following a decline in oil prices easing the subsidy spend, as Bernama reports.
He said oil prices had declined from about US$120 per barrel from earlier to between US$90 and US$98 this month, which has helped ease pressure on subsidy spending. “Now, with prices coming down and moderating, we’re probably looking at about RM3.5 billion-RM4 billion of subsidies,” he said, adding that the government will maintain the subsidised fuel price and current 200 litre monthly quota for RON 95 under the Budi95 fuel assistance programme.
Amir Hamzah said reforms implemented over the past few years had also helped strengthen the country’s ability to withstand external shocks and manage rising subsidy costs. Without the reforms, the government would be facing subsidy costs higher than RM10 billion, he explained.
He said the government’s continued priority in the immediate term was to ensure that fuel supplies remain uninterrupted. “The economy cannot function if there’s no supply,” he said. He added that the country had thus far avoided supply disruptions partly because it is a net energy exporter, while national institutions and oil companies were able to secure supplies through their global networks.
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Gomen complain about high fuel subsidy. Miti then ban affordable EV especially BYD CKD. What is this??
Stop selling your IC details for cheap petrol. Subsidised RON95 must be freely available to all rakyat without hassle or quotas, even to those Malaysians who drive foreign registered car, and for foreigners who reside in Malaysia driving local car.
Malaysia fuel subsidy increased from MYR700mil per month in Jan and Feb to MYR7.5bil in May 2026. In Jan and Feb crude oil price was between USD65 to USD75, after the Middle East conflict crude oil price spikd to a high about USD120. Comparatively less than 100%, but our fuel subsidy has jumped 10x. Can someone more learned help me understand the math?
At that rate we can build 19 nos. of 400 beds hospitals each month!
BYD: To help lessen high oil price impact, can we CKD and sell Seagull RM56K price here?
MITI: Nope.
Tongkat Croni more important than RM7.5billion fuel subsidy. Tongkat Ultra Pro Max Premium Malaysia Edition.