KOTA KINABALU, March 15 — The government has to allocate a subsidy of RM2 billion per month to maintain the price of RON95 petrol at RM1.99 per litre through the Budi MADANI RON95 initiative, following the surge in world crude oil prices, said Prime Minister Datuk Seri Anwar Ibrahim.
Price maintenance is expected to involve a total annual government subsidy of RM24 billion to ensure that people are not burdened, given that world oil prices have now increased.
Apart from maintaining RON95 petrol as among the cheapest in the world, the government would also continue to bear the diesel subsidy in Sabah and Sarawak, set at RM2.15 per litre compared to the actual cost of RM4.30 per litre.
"Last year, the diesel subsidy for Sabah and Sarawak was RM2 billion. But so far this year, after the war, the price soared, and the government has to pay (an estimate if current prices remain) RM4.6 billion (per year) to cover the diesel subsidy in both states.
"This (price maintenance) is what we are doing. The Chief Minister (Datuk Seri Hajiji Noor) himself has requested that the hard-working Sabahans not be burdened (with increased transportation costs)," he said when speaking at the opening of the National Consumer Day 2026 today.
Also present were Hajiji, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali, and his deputy Datuk Fuziah Salleh.
Commenting further on the current surge in oil prices, Anwar said it was caused by the geopolitical crisis in the Middle East, and 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, which has resulted in international merchant ships being stranded, thus increasing the cost of transportation and insurance for the global supply chain," he said.
Despite facing external crises, the Prime Minister is grateful that Malaysia remains peaceful and prosperous, and serves as an example of a moderate country, to the extent that leaders of other countries have contacted Malaysia to seek its views on resolving the conflict.
Meanwhile, Anwar reminded the people to delve into the true meaning of the National Consumer Day celebration and also the month of Ramadan by becoming smart consumers.
He advised the public not to be easily influenced by advertisements that lead to excessive spending, but instead to practise moderation and always be mindful to help the poor.
The public was also reminded of economists' warnings about the theory of conspicuous consumption, in which consumers tend to buy beyond their means due to being mesmerised by marketing hype and sentiment rather than by their family's real needs.
"The government is always active in utilising platforms such as National Consumer Day to educate and enlighten the public so that they are able to make rational assessments, thus choosing goods at lower costs but with good quality," Anwar said.
