Arya News - Malaysia`s PM Anwar said the government was committed to keeping RON95 at RM1.99 (US$ 0.49) per litre, despite global crude oil prices rising to between US$120 (RM490) and US$130 (RM530) a barrel.
MELAKA – Malaysians will be spared higher RON95 petrol prices even if the annual fuel subsidy bill climbs to RM45bil, as the government is prepared to absorb the increase in costs, says Datuk Seri Anwar Ibrahim.
The Prime Minister said the government was committed to keeping RON95 at RM1.99 per litre despite global crude oil prices rising to between US$120 (RM490) and US$130 (RM530) a barrel.
Absorbing the higher subsidy costs, he said, would protect households, particularly low-and middle-income families, from further pressure on their daily expenses.
“If oil prices continue to surge, the cost borne by the government could reach between RM42bil and RM45bil a year.
“If we raise fuel prices in line with market rates, people would have to pay an additional RM2 or RM3, or at least RM5 a day.
“Imagine those who have to send their children to school and go to work. That could mean an extra RM10 a day,” he said at the Sentuhan Kasih Madani programme here.
At the event, the Prime Minister also launched the National Cost of Living Action Plan 2030 (NCLAP30).
Anwar said global crude oil prices had nearly doubled from about US$70 (RM286) a barrel, placing many countries under mounting cost-of-living pressures.
“Malaysia had chosen to continue shouldering a substantial fuel subsidy bill to prevent consumers from facing steep petrol price increases.”
Anwar rejected the view that subsidies made people overly dependent on government assistance, saying such arguments must take into account the realities faced by low-income households.
He said economic progress must bring meaningful improvements to people’s lives, with national success measured beyond growth, investment and trade figures.
“The government’s approach is guided by the principle of ‘reaching for the sky while remaining rooted in the ground’.
“This requires the country to continue exploring new fields of knowledge and technology without neglecting human values, ethics, culture and the well-being of the people at the grassroots level,” he said.
In his speech, the Prime Minister said that the Domestic Trade and Cost of Living Ministry must ensure the country’s positive economic performance also translates into solutions to the people’s problems, particularly those related to the cost of living.
He said although the government could take pride in the country’s improving economic performance, the people’s needs and financial burdens must not be overlooked.
“We are proud when the economy surges, but we must also consider whether that economic growth can solve the people’s problems.”
Anwar said NCLAP30 would guide efforts to address the cost of living in a comprehensive and integrated manner to improve the people’s well-being.
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Malaysians to be spared higher RON95 prices even if subsidy bill hits RM45bil, says PM Anwar