“Malaysians must remain prepared amid global oil price uncertainty”

KOTA KINABALU (March 15): Malaysians must remain prepared and resilient in the face of global uncertainties and potential increases in oil prices following rising geopolitical tensions in the Middle East, said Datuk Mustapha Sakmud.

The Minister in the Prime Minister’s Department (Sabah and Sarawak Affairs) said global geopolitical tensions have begun affecting international energy markets, which could influence fuel prices worldwide.

“Conflicts in the region typically cause global oil prices to surge, and the impact will also be felt by other countries, including Malaysia,” he said.

Mustapha noted that as an oil-producing nation through Petroliam Nasional Berhad (Petronas), Malaysia could benefit from rising oil prices.

However, he cautioned that higher costs across the energy supply chain and the burden of fuel subsidies could also put pressure on the national economy.

He said the Madani government continues to protect the people by maintaining the price of RON95 petrol at RM1.99 per litre through targeted subsidies under the Budi Madani initiative.

“The actual market price of RON95 without subsidies is estimated at around RM2.67 per litre, but the government absorbs the difference so that the people are not burdened,” he said.

Mustapha added that the government currently spends about RM3.2 billion monthly on petrol and diesel subsidies, including about RM2 billion for RON95 and RM1.2 billion for diesel.

“This demonstrates the government’s strong commitment to protecting the people from global economic shocks,” he said.

He also noted that the government continues to maintain diesel subsidies for Sabah and Sarawak to ensure that transportation, logistics and daily living costs in both regions remain stable.

According to Mustapha, Malaysia still enjoys among the lowest fuel prices in the region compared with neighbouring ASEAN countries.

“In Thailand, petrol prices can reach about RM4 per litre, in Indonesia around RM3 to RM3.50 per litre, while in Singapore prices can exceed RM8 to RM10 per litre,” he said.

Mustapha urged Malaysians to remain calm and understand the broader economic realities amid global uncertainties.

“In a world filled with uncertainty, we must remain calm, not be influenced by speculation, and continue to stand united as Malaysians,” he said, adding that the government will take appropriate measures to ensure economic stability and safeguard the welfare of the people.

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