Malaysia's Ron95 petrol subsidy bill spikes to over $1.6b a month

Malaysia is currently spending about RM5 billion (S$1.6 billion) a month to offer fuel subsidies to its citizens, Malaysia's Prime Minister Anwar Ibrahim revealed on Monday (May 4).

The Budi95 fuel subsidy programme allows eligible Malaysians driving locally registered vehicles to purchase the petrol at a subsidised rate of RM1.99 per litre.

At a monthly assembly, the prime minister said the country has a secure fuel supply, although prices continue to climb from the Middle East conflict.

"If prices rise sharply, (the subsidy bill) could exceed RM6 billion a month," he was quoted by The Star as saying.

Government spending on fuel subsidies was about RM700 million a month in January, reported Bernama.

PM Anwar said his government is committed to maintaining the Budi95 subsidy rate.

In April, the monthly quota for subsidised Ron95 petrol was cut to 200 litres per Malaysian, down from 300 litres.

The retail prices for petrol from April 30 to May 6 are set at:

• Ron97: RM 4.90 per litre
• Ron95 (without subsidy): RM3.97 per litre
• Diesel (Peninsular Malaysia): RM5.12 per litre

[[nid:735019]]

lim.kewei@asiaone.com