Fuel subsidies to cost RM4bil a month, says finance ministry

 The ministry says the increased bill is due to rising global crude oil prices.

The finance ministry said petrol and diesel subsidies were estimated at about RM3 billion a month two weeks ago, when crude oil was around US$90 per barrel.

PETALING JAYA:

 Putrajaya’s petrol and diesel subsidy bill is expected to exceed RM4 billion a month, says the finance ministry.

The ministry attributed this to the government’s decision to maintain RON95 petrol at RM1.99 per litre and diesel at RM2.15 per litre despite rising global crude oil prices.

“Two weeks ago, when the price of Brent crude was around US$90 (RM359.46) a barrel, petrol and diesel subsidies were estimated to cost around RM3 billion a month.

“Now with the price of Brent exceeding US$90, petrol and diesel subsidies are expected to cost over RM4 billion a month,” it said in a statement.

Earlier today, Prime Minister Anwar Ibrahim announced that the 300-litre monthly quota for subsidised RON95 petrol has been reduced to 200 litres as an interim measure to address the impact of the Middle East conflict.

The new quota for the subsidised fuel, priced at RM1.99 per litre, is expected to take effect from next month.

Anwar emphasised that the measure is temporary, pending a recovery in oil prices, supply conditions and the global economy.

Anwar also said Sabah and Sarawak would continue to receive subsidised diesel at RM2.15 per litre despite rising prices, citing the states’ logistical and geographical challenges. - FMT