Government to absorb RM30 billion in fuel price costs

The Malaysian government is prepared to absorb up to RM30 billion in fuel subsidy costs, a move achieved through internal savings and the elimination of national fund leakages, Prime Minister Datuk Seri Anwar Ibrahim announced. He expressed disagreement with raising fuel prices to counter the effects of the global supply crisis, affirming the government's commitment to managing these expenses monthly to shield citizens from the burden.

Anwar explained the significant monthly expenditure, noting that while the initial allocation was lower, the cost of fuel subsidies surged to RM5 billion, and at times RM7 billion per month, before recently settling around RM4 to RM5 billion monthly. He calculated that a consistent RM3 billion monthly expenditure over ten months would amount to RM30 billion, a sum the government is capable of managing through fiscal prudence and by halting financial leakages.

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How much do we cover per month? Not within the old allocation, but when oil prices rose we paid RM5 billion a month, even RM3 billion a month at times. Then it rose to RM7 billion a month, now it's down again to RM4 billion, RM5 billion a month extra.

The Prime Minister firmly rejected suggestions that the government should take on debt to sustain fuel subsidies. "If you ask me to borrow, I can borrow now, and then I leave the government for the children to pay. That's why the solution is not easy debt, so we do what we can," he stated, prioritizing sustainable financial management over accumulating debt.

This government approach ensures that fuel prices in Malaysia, particularly for RON95 petrol at RM1.99 per liter, remain among the lowest globally. During the event where the announcement was made, the Prime Minister also allocated RM2 million for the construction of a community hall in Taman Keladi.

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If you ask me to borrow, I can borrow now, and then I leave the government for the children to pay. That's why the solution is not easy debt, so we do what we can.