Prime Minister Anwar Ibrahim reveals a RM24 billion annual subsidy to maintain RON95 at RM1.99, with diesel support in Sabah and Sarawak also surging due to global oil price hikes
KOTA KINABALU: The government is allocating RM2 billion per month to maintain the price of RON95 petrol at RM1.99 per litre.
Prime Minister Datuk Seri Anwar Ibrahim said this subsidy, channelled through the Budi MADANI RON95 initiative, is a direct response to surging world crude oil prices.
The price maintenance is expected to involve a total subsidy of RM24 billion annually.
Anwar stated this commitment ensures the people are not burdened by the increased global oil costs.
He added the government will also continue bearing the diesel subsidy in Sabah and Sarawak, set at RM2.15 per litre.
This compares to an actual cost of RM4.30 per litre.
“Last year, the diesel subsidy for Sabah and Sarawak was RM2 billion,” Anwar said.
He explained that so far this year, following geopolitical conflicts, the estimated annual cost has soared to RM4.6 billion if current prices persist.
The Prime Minister was speaking at the opening of the National Consumer Day 2026.
He noted Sabah Chief Minister Datuk Seri Hajiji Noor had requested that hard-working Sabahans not be burdened with increased transportation costs.
Anwar attributed the current oil price surge to the geopolitical crisis in the Middle East.
He stated Malaysia, as an independent country, strongly opposes military intervention and attacks by Israel and the United States on Iran.
“The tension has caused the closure of the Strait of Hormuz,” he said.
This has resulted in international merchant ships being stranded, increasing transportation and insurance costs for the global supply chain.
Despite external crises, Anwar expressed gratitude that Malaysia remains peaceful and prosperous.
He said the country is seen as a moderate example, with other world leaders contacting Malaysia for its views on conflict resolution.
Meanwhile, the Prime Minister reminded the people to embrace the true meaning of National Consumer Day and Ramadan by becoming smart consumers.
He advised the public not to be easily influenced by advertisements leading to excessive spending.
He urged the practice of moderation and mindfulness to help the poor.
Anwar reminded the public of economists’ warnings regarding the theory of conspicuous consumption.
This theory describes consumers buying unnecessary items beyond their means due to marketing hype.
He contrasted this with the real needs of the family.
“The government is always active in utilising platforms such as National Consumer Day to educate and enlighten the public,” Anwar said.
This enables rational assessments to choose lower-cost goods with good quality.
