PETALING JAYA: The government’s subsidy bill to maintain RON95 petrol at RM1.99 per litre under the BUDI95 scheme could reach RM24 billion by the year-end if the Middle East conflict continues till then, says Prime Minister Anwar Ibrahim.
Anwar said this figure was based on the government’s calculation that maintaining the subsidised price would cost it RM2 billion a month for RON95, The Star reported.
“If the situation (in the Middle East) continues until the end of the year, it will cost us RM24 billion in subsidies just for (RON95) petrol.
“That is why we must pray for a swift end to this (conflict) so that we won’t be burdened (any further),” Anwar, who is also the finance minister said.
However, he said Putrajaya will look for other ways to fund the subsidy costs for RON95 and diesel, particularly through cost-cutting measures and more responsible management of finances in other sectors.
He stressed that the government does not want Malaysians to be burdened by higher fuel prices due to the effect it would have on the overall cost of living.
Brent crude prices have surged from US$60 per barrel to US$119 per barrel since the start of the war, and have currently stabilised at about US$100 per barrel.
Despite that, Putrajaya has decided to maintain the subsidised price for RON95 while raising its non-subsidised price by 60 sen. The price of RON97 has also gone up by 60 sen while the price of diesel in West Malaysia was raised by 80 sen.
Earlier today, finance minister II Amir Hamzah Azizan said maintaining subsidised petrol and diesel prices will increase the government’s monthly fuel subsidy bill to RM3.2 billion, up from RM700 million previously.
This comprised RM2 billion for RON95 and RM1.2 billion for diesel.
