MELAKA, Oct 24 — The Malaysian government is prepared to absorb fuel subsidy costs of up to RM45 billion annually amid surging global crude oil prices, rather than pass the burden on to consumers through higher petrol prices, Prime Minister Datuk Seri Anwar Ibrahim said.

He said the government remained committed to maintaining the price of RON95 petrol at RM1.99 per litre, despite international crude oil prices rising to between US$120 and US$130 per barrel.

Anwar said the move was intended to protect consumers, particularly low- and middle-income households, from rising fuel costs and mounting pressure on household budgets.

“If oil prices continue to surge, the cost borne by the government could reach between RM42 billion and RM45 billion a year,” he said at the Sentuhan Kasih MADANI programme and the launch of the National Cost of Living Action Plan 2030 at Stadium Hang Jebat in Krubong today.

He said allowing domestic fuel prices to rise in line with international market rates could increase consumers’ daily expenses by several ringgit, particularly for those who commute to work and send their children to school.

Anwar added that the government had opted to shoulder a larger share of the financial burden to prevent a sharp increase in living costs for the public.

The prime minister said the decision reflected the government’s commitment to balancing fiscal pressures with the need to protect household purchasing power amid volatile global energy markets.

The move comes as international crude oil prices have climbed significantly from previous levels of around US$70 per barrel, increasing the cost of maintaining domestic fuel subsidies.

–Bernama