Prime minister Datuk Seri Anwar Ibrahim has repeated his earlier statement that Malaysia will continue efforts to maintain the current RM1.99 per litre price of subsidised RON 95 petrol under the Budi Madani RON 95 (Budi95) scheme despite global crude oil prices having climbed to around US$100 per barrel following escalating tensions in the Middle East.
Despite the pressure on global markets, he said the government would continue taking measures to shield Malaysians from rising fuel prices, as The Star reports. “We will do our best to ensure the price of RON 95 remains at RM1.99 so that the rakyat are not burdened,” he said.
Last week, Anwar said that the country can hold off for one or two months, but told the civil service, workers and businesses to be wary of the situation, which doesn’t look like it will be resolved anytime soon.
He reiterated the point again in his latest statement, saying that the conflict in the region and disruptions to key shipping routes, including the Strait of Hormuz, could push global costs higher. He noted that the disruption has already significantly affected the movement of oil, gas and essential goods. “This will inevitably increase global costs, including transportation and logistics,” he said.
Separately, the reminder to keep watch and be prepared for any changes is the right approach to the situation that has developed, says CGS International Securities Malaysia chief economist Nazmi Idrus. He said that while the country may be able to maintain the price of RON 95 at RM1.99 per litre despite the hike in global oil prices, doing so could increase fiscal pressure and affect fiscal consolidation plans.
Despite the restructuring of diesel and RON 95 subsidies, he said that the overall subsidy commitment, as a share of gross domestic product (GDP), has remained relatively high compared to levels before the pandemic, and that the country’s fiscal deficit and government debt situation require continued fiscal consolidation, Bernama reports.
“At current conditions, a spike in the fuel subsidy costs could potentially overturn the fiscal consolidation trajectory that the government has planned. In a way, it is actually a smart move for the government to signal the potential price risk, as it reduces business uncertainties and allows the public to prepare for such eventualities. This is better than keeping quiet,” he told the national news agency.
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logical that there may be adjustment to Budi95 if crude oil continue to surge past usd100/barrel. it is not good to continue commit too much resources on Budi95 subsidy when other area of development will also see a rise in cost due to global crude oil price effect. so to commit too much resources on just Budi95 alone may result in weakness in other are seems not smart
Fire PMX and petrol price will be reduced to RM 1.50.
You’re too sick and too tired to realize that the potus should be fired so that the conflict stops and restabilizes the global crude oil supply and price.
IMO in the event that global oil price remains high , gahmen should maintain budi95 but reduce the quota to say 200 liters per month.