While Malaysia’s monthly fuel subsidy bill had eased to around RM3 billion between June and August this year, down from nearly RM5 billion in March and April, the total fuel subsidy expenditure is still projected to be around RM40 billion for 2026, the ministry of finance has stated, reported The Star.
The moderation in fuel subsidy expense followed a sharp increase in global crude oil prices amid the ongoing conflict in the Middle East, which has placed considerable pressure on government finances, the finance ministry said.
“The government has faced significant fiscal pressure from the global supply crisis, which has led to higher subsidy expenditure, particularly for fuel and utilities. The conflict pushed global crude oil prices above US$120 per barrel, and Malaysia has not been spared the effects of this crisis,” the finance ministry stated in a written parliamentary reply.
