PETALING JAYA — Tengku Zafrul Aziz has explained that higher revenues earned by Petronas from rising global oil prices are insufficient to offset Malaysia’s growing fuel subsidy burden.

The senior political adviser to Prime Minister Anwar Ibrahim said that although the state oil firm is benefiting from elevated crude prices amid ongoing tensions in the Middle East, the additional income — estimated at between RM10 billion and RM14 billion — falls short of covering subsidy costs.

“Fuel subsidies are currently estimated at about RM4 billion per month, or roughly RM48 billion annually,” he said in a video shared on Facebook.

Zafrul also warned against treating Petronas as an unlimited source of government funding, stressing that excessive withdrawals could jeopardise the company’s long-term sustainability.

“The issue is not whether Petronas is profitable or not. The issue is how we manage the nation’s wealth so that it is enough for today, and still available for tomorrow,” he said.

He cautioned that depleting the company’s profits could slow investments, reduce production capacity, and ultimately impact future revenues.

“If all of its profits are spent, investments will slow, production may decline, and future revenues will be affected. That is not saving — that’s eating into the future,” he added.

Zafrul noted that Petronas recorded revenue of approximately RM266 billion and profits of RM45.4 billion in 2025.

The Finance Ministry has projected that the company will contribute RM20 billion in dividends to the government in 2026.

Since its establishment in 1974, Petronas has contributed about RM1.5 trillion to the nation through dividends, taxes, export duties, and payments to the national trust fund, he said.

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