Malaysia government pays almost RM4 billion in petrol subsidies!
Malaysia’s petrol price is lower than that of petrol-producing countries such as Indonesia and Saudi Arabia, according to a statement from Finance Minister Tengku Zafrul. The government’s actions to fix the maximum fuel price have required massive government subsidies, and even illegal people have smuggled RON95 gasoline abroad.
The government has established a retail ceiling price of RM2.5 per litre for RON95. This retail price ceiling will go into effect in February 2021, when international oil prices were about $60 per barrel.
International oil prices rose to around $100 a barrel after a 15-month gap.
Petroleum products were subsidised by the government for RM200 million in February 2021, RM2 billion in January 2022, and over RM4 billion in March 2022.
Government subsidies benefit people of all classes; even the wealthy who do not require government assistance can gain benefit from it.
