MELAKA, Oct 24 — The government is prepared to absorb an increase in fuel subsidy costs, which could reach RM45 billion annually amid rising global crude oil prices, rather than increase fuel prices and pass the burden to the people, said Prime Minister Datuk Seri Anwar Ibrahim.
He said the government remained committed to maintaining the price of RON95 petrol at RM1.99 per litre despite international crude oil prices climbing to between US$120 (around RM490) and US$130 a barrel.
He said the move was aimed at shielding the public, especially low- and middle-income groups, from the impact of rising global fuel prices and the resulting pressure on household expenses.
“If oil prices continue to surge, the cost borne by the government could reach between RM42 billion and RM45 billion a year. If we raise fuel prices in line with market rates, people would have to pay an additional RM2 or RM3, or at least RM5 a day.
“Imagine those who have to send their children to school and go to work themselves. That could mean an extra RM10 a day. It is better for the government to bear the burden than to burden the people, our parents,” he said.
He was speaking at the Sentuhan Kasih Madani event and the launch of the National Cost of Living Action Plan 2030, held at Hang Jebat Sports Complex in Krubong here today.
Also present were Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali and his deputy Datuk Fuziah Salleh.
Anwar meanwhile rejected claims that generous subsidies make the people overly dependent on government aid, stressing that policies must consider realities faced by low-income households.
He said the government would keep balancing efforts to drive economic growth with its responsibility to ensure national progress translates into better standards of living.
He said efforts to drive economic growth, including through mastery of emerging technologies such as AI and semiconductors, must go hand in hand with addressing the people’s basic needs, particularly the cost of living, education, healthcare and jobs.
“We are not just talking about figures and statistics, but about people.
“The government's approach is guided by the principle of ‘reaching for the sky while remaining rooted in the ground’, which requires the country to continue exploring new fields of knowledge and technology without neglecting human values, ethics, culture and the well-being of the people at the grassroots level,” Anwar said.
