Finding balance in a shifting global fuel landscape

 With focus on long-term resilience, there is reason to believe Malaysia can emerge stronger from this energy crisis.

From Ben Fong

The government’s decision to cut the monthly BUDI95 quota from 300 litres to 200 litres from April comes amid heightened tensions in Iran that have driven fuel prices upwards.

For many Malaysians, however, this is not just about geopolitics. It is about how rising fuel costs ripple through everything else they pay for.

This challenge is not unique to Malaysia. Across the world, governments are making similar recalibrations. In the Philippines, authorities went as far as declaring an energy emergency on March 24.

Such developments highlight the difficult trade-offs governments face in balancing the need to shield the public from rising costs while ensuring long-term economic sustainability.

However, as local policies adjust to shifting geopolitical realities, there is a need to ensure that groups which may not neatly fit current criteria, but are still significantly affected, are not overlooked.

For example, the revised 200-litre quota may not be sufficient for those who travel weekly to see their families or workers living farther from where they work due to high housing costs in urban centres.

While the government may classify them within the 10% affected by the new policy, they should not be treated as mere statistics but real, everyday Malaysians deserving of support. Many are from the B40 and M40 groups.

On the ground, particularly in Bukit Bintang, where I am most active in community work, I see and hear firsthand how the hike in global oil prices is already affecting people’s daily lives.

Communication is equally important in managing such changes. When diesel prices rose sharply, confusion over the pace and rationale of the increase created a perception gap. In policy, perception often matters as much as substance.

These concerns must be addressed promptly and clearly. Timely, consistent explanations are essential to help Malaysians understand the rationale behind such decisions and to maintain public confidence.

Looking ahead, the priority should be twofold. In the immediate term, there is a need to ensure that those who may fall through the cracks are identified and supported through continued refinement of existing mechanisms.

At the same time, sustained efforts to improve how policies are explained and understood will go a long way to strengthen trust. Stepping up enforcement is also imperative to curb leakages such as subsidised fuel smuggling.

Over the longer term, the focus must shift towards reducing Malaysia’s exposure to such volatility.

According to the finance ministry, fuel subsidies have surged to around RM4 billion a month, up from about RM700 million in February. This simply cannot be sustained in the long-term.

One option is to hasten the transition towards cleaner and more stable energy sources.

Expanding renewable energy, particularly solar and emerging alternatives like hydrogen, is no longer just an environmental goal but an economic necessity.

The government’s push towards electric vehicle adoption, driven by broader industrial and energy policies, should be acknowledged.

At the same time, the transport ministry has a key role to play in ensuring this transition translates into practical mobility solutions, particularly through better integration with public transport and continued improvements in charging accessibility.

Investments in public transport, particularly in urban centres like Kuala Lumpur, have already begun to improve connectivity and provide alternatives for daily commuting. The next move is to enhance last-mile connectivity so that more people are encouraged to make the switch.

In this regard, practical measures such as expanding sheltered pedestrian walkways, particularly in high-density urban areas, can make a meaningful difference.

By making short-distance travel more comfortable and accessible, such improvements can reduce reliance on private vehicles while complementing broader investments in public transport.

Another important step is to progressively ensure that subsidies are delivered more efficiently, with support reaching those who truly need it. This includes strengthening targeting mechanisms and tightening enforcement to minimise leakages and prevent abuse.

These transitions will take time to deliver full results. In the meantime, it cannot be a one-sided effort. A whole-of-nation approach is needed, with the community also playing its part.

Where possible, measures such as carpooling, flexible work arrangements and more deliberate use of public transport can help ease daily costs and reduce overall fuel demand.

Even mindfully prioritising essential over discretionary spending can make a meaningful difference in strengthening the country’s collective resilience, especially in these trying times.

Malaysia has faced periods of uncertainty before and has consistently demonstrated the ability to adapt and move forward.

With careful calibration, clear communication and a laser focus on long-term resilience, there is every reason to believe that the country can come out stronger from this. - FMT

 Ben Fong is the chairman of the Bukit Bintang Parliamentary Zone Residents’ Representative Council.

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.