Malaysia Fuel Prices Will Never Be Lower Than RM 2.05 - PM Anwar

In response to critics who claim that his pledge to reduce fuel prices is based on speeches he gave 15 years ago, Prime Minister Anwar Ibrahim said that the price of RON 95 will never fall below RM 2.05 per litre in a video clip that was posted on X.

Using Saudi Arabia as an example, the prime minister accused critics of twisting his words, claiming that the pledge was made at a time when global fuel prices were low.

“The oil-rich Kingdom produces more oil than Malaysia and yet prices there are more expensive”, he said.
He also stated that between RM 30 billion and RM 40 billion in subsidies were spent to keep RON 95 petrol prices at RM 2.05 per litre.

"How much else do you expect it to drop? We have already provided subsidies, high subsidies, RM30 to 40 billion in subsidies currently," said the prime minister.

Anwar also justified the price difference by stating that Saudi Arabia is used as a comparison because the country is a leading oil producer with output that is multiple times that of Malaysia. Nonetheless, its prices remain higher.
According to Deputy Finance Minister Datuk Seri Ahmad Maslan, the government has so far spent more than RM 50 billion annually to subsidise fuel like RON 95, diesel and petrol. This was stated back in May. All Malaysians, including those in the higher-income T20 group, benefit from these subsidies.

As a result, there are plans to introduce targeted fuel subsidies that may be announced during the presentation of Budget 2024, which is scheduled to be made in Parliament on October 13.