- News
- Auto News
- RM1.50 Petrol Is Off The Table – PM Anwar Finally Responds To Netizens
![]()
Prime Minister Datuk Seri Anwar Ibrahim has addressed persistent calls on social media to slash pump prices, clarifying why Malaysia cannot afford to lower petrol rates to RM1.50 per litre.
Speaking at a meet-and-greet session with the Universiti Islam Selangor (UIS) community, Anwar defended Putrajaya's current fuel subsidy framework, warning that further price cuts would force the government to rack up unsustainable national debt.
Malaysia currently allocates an estimated RM40 billion annually toward fuel and diesel subsidies to maintain subsidised rates at the pump.
- RM1.50 Petrol Clarification: PM Anwar explained that when RM1.50 was originally proposed years ago, petrol in Saudi Arabia was only ~50 sen/litre. Today, Saudi petrol costs around RM2.40 to RM2.50 per litre.
- Import Dependency: Malaysia still imports roughly 50% of its petroleum needs, yet continues to maintain heavily subsidised pump rates lower than major oil-producing nations.
- Staggering Subsidy Bill: The government spends RM40 billion annually on petrol and diesel subsidies to cushion local drivers.
- Fiscal Reality: Lowering fuel prices further would directly increase national debt, which Putrajaya insists it cannot allow to pile up any further.
1. "I don't understand it" — Addressing social media chatter
Anwar expressed surprise at ongoing online commentary questioning why petrol prices haven't been reduced further.
"As for fuel prices, I do not know why I keep seeing people on social media saying that I have not lowered fuel prices," Anwar stated.
"I don't understand it. They say fuel prices should be reduced to RM1.50 per litre, but I say that when we first proposed RM1.50, petrol in Saudi Arabia cost about 50 sen per litre."
2. Comparing Malaysia with Saudi Arabia
To put global fuel economics into perspective, the Prime Minister pointed to Saudi Arabia, the world's largest petroleum producer.
- Saudi Arabia: Petrol currently retails for around RM2.40 to RM2.50 per litre, despite immense local production capacity.
- Malaysia: Imports nearly 50% of its petroleum requirements, yet maintains heavily subsidised pump prices below regional and global averages through government interventions.
Read: 7 Countries With Pricier Petrol Than Malaysia (Even Oil-Rich Ones!)
3. "Who is going to pay for it?"
Highlighting the fiscal burden on public funds, Anwar emphasised that every litre filled at local petrol stations is backed by taxpayer-funded subsidies.
"Do you know how much the government spends each year on petrol and diesel subsidies? RM40bil. Every time you fill up your tank, the government is subsidising the cost," he explained.
"People can say fuel prices should be lowered further, but then who is going to pay for it? I don't want the country's debt to keep piling up."
Anwar added that despite global inflationary pressures, Malaysia’s economic fundamentals remain relatively stronger and more stable compared to many neighbouring nations.
Source: The Star
Tagged:
Written By
Sofea Najmi
A Bachelor of English Language and Literature graduate with an obsession for the finer details. Sofea uses her background in translation to decode the technicalities of automotive innovation. She is dedicated to delivering impactful, meticulously researched articles that provide a narrative far beyond the spec sheet. LinkedIn: https://bit.ly/3C018vv