No abrupt changes to fuel subsidies despite Mideast tensions, says Fadillah

He said the government is aware the conflict could persist for one to two years, but any action taken will prioritise the welfare of Malaysians, Bernama reported.

“This is a challenge we are aware of, and we must rely on data to determine the necessary steps to ensure energy supply remains secure, the people are protected, economic growth continues, and industries receive the support they need,” he said in an interview on Bernama Radio.

Fadillah, who is also the energy transition and water transformation minister, said monthly subsidy expenditure has risen to between RM6 billion and RM7 billion, but the government remained committed to continue supporting the people without disrupting economic planning.

“Existing subsidy policies, including those for RON95 petrol and diesel in Sabah and Sarawak, will be maintained based on current data to ensure any sudden increase in living costs does not burden people,” he said.

Brent crude oil prices have remained volatile, hovering in the mid-to-high US$90 per barrel range due to the ongoing Middle East conflict.

This has resulted in rising fuel costs globally, but Malaysia has maintained the subsidised RON95 petrol price at RM1.99 per litre to ease the public’s financial burden.

On supply risks, Fadillah said the government is preparing for worst-case scenarios should disruptions persist, particularly involving the Strait of Hormuz, which handles about a quarter of global seaborne oil trade.

In fact, he said Petronas has taken proactive steps to secure alternative supplies from the Asia-Pacific, Australia, South America and Africa to ensure domestic stability.