Petroleum Product subsidies Expected To Reach RM40 Bln This Year - MOF

KUALA LUMPUR, July 1 (Bernama) -- The government is expected to bear almost RM40 billion in petroleum product subsidies this year as a result of the increase in global oil prices following the West Asia conflicts, according to the Ministry of Finance (MOF).

The MOF said the government had borne subsidies of nearly RM800 million per month for RON95 and diesel in January and February 2026, before rising to around RM5 billion per month in March and April 2026.

“If the current market price remains, the government is expected to bear total subsidies on petroleum products of RM40 billion for 2026,” the MOF said in a written response posted yesterday on the parliament website.

The ministry was responding to a question from Salamiah Mohd Nor (PN-Temerloh) who wanted to know the latest amount of allocation for petrol and diesel subsidies.

This increase in subsidy amount allows Malaysian citizens aged 16 and above to enjoy RON95 petrol at a subsidised price of RM1.99 sen per litre.

The MOF said the country’s petroleum supply currently remains stable and sufficient.

The MADANI Government will continue to strengthen long-term supply security measures and targeted subsidies while the global supply crisis is ongoing.

-- BERNAMA