KUALA LUMPUR, March 22 — Government subsidies have risen from around RM700 million to RM3.2 billion in less than a week following the surge in global oil prices caused by the conflict in West Asia, said Prime Minister Datuk Seri Anwar Ibrahim.
In a Facebook post today, he said that in an increasingly uncertain world, efforts to protect the people’s welfare and well-being remain a priority for the Madani Government.
“The public and the majority of traders do not need to pay full market prices because these subsidies are channelled through BUDI Madani RON95 (BUDI95) and BUDI Diesel,” he said.
Anwar noted that since the rise in global oil prices following the West Asia conflict, triggered by attacks by Israel and the United States on Iran, many have questioned why Malaysia, an oil-producing country, is also affected.
He said the Strait of Hormuz, a major global oil route, has been disrupted by the conflict, causing global oil supplies to tighten and prices to surge.
Anwar explained that Malaysia is affected as nearly 50 per cent of the country’s oil supply passes through the strait.
“Although Malaysia is an oil producer, we actually import more oil than we export,” he said.
On February 28, the US and Israel attacked targets in Iran, including in Tehran, causing damage and civilian casualties.
Iran launched retaliatory strikes on Israeli territory and US assets in West Asia, and also closed the Strait of Hormuz.
