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 US$120 and US$130 a barrel.
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.
