He said the move was aimed at shielding the public, particularly low- and middle-income groups, from the impact of rising global fuel prices and the resulting pressure on household expenses.
MELAKA: The government is prepared to absorb an increase in fuel subsidy costs, which could reach RM45 billion annually amid a surge in global crude oil prices, rather than pass the burden on to the people through higher fuel prices.
Prime Minister Datuk Seri Anwar Ibrahim 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 USD120 and USD 130 a barrel.
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He said the move was aimed at shielding the public, particularly 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’ Programme and the launch of the National Cost of Living Action Plan 2030 at the Hang Jebat Sports Complex in Krubong here today.