Reducing Fuel Prices Not As Simple As It Seems; Involves Heavy Financial Commitment, Says PM Anwar

Prime Minister Datuk Seri Anwar Ibrahim has explained that lowering fuel prices is far more complex and costly than many people realise, noting that any adjustment requires careful financial planning and significant government expenditure. Speaking during the Sentuhan Sahabat Madani Bukit Batu programme, the Prime Minister, who also holds the portfolio of Finance Minister, said the administration must strike a delicate balance between easing the people’s financial burden and ensuring the nation’s long-term fiscal health remains secure.

Balancing Public Needs and National Finances

“Take fuel prices, for example. Do you think it is easy to reduce them? Yes, we have managed to bring them down, but if we want to lower them further, it gives us a real headache,” Anwar told the audience, as reported by The New Straits Times. “We have to spend a great deal of public funds to do so. The question then becomes: where will we find the money to sustain such measures? Every ringgit allocated for subsidies or price controls is a ringgit that cannot be used for other critical areas such as healthcare, education, infrastructure, or social welfare.”

He acknowledged that the government faces pressure from two sides: if prices are kept high, ordinary households and local businesses struggle to cope with rising costs; but if prices are reduced too drastically or without proper calculation, it can place an unsustainable strain on the national budget.

“Yet we understand the hardship, which is why we have already taken steps to bring down the price of RON 95 petrol. Even with the current global market fluctuations, our fuel prices remain among the lowest in the world, a fact that shows the government is already absorbing a large portion of the cost to protect the people,” he emphasised.

Addressing Calls for Lower Diesel Prices

The Prime Minister also responded to feedback from some quarters questioning why reductions have been made for RON 95 but not for diesel. He said the government is fully aware of these concerns and is actively reviewing the matter, but highlighted that diesel pricing involves its own set of unique challenges.

“There are those who say: ‘This Prime Minister has lowered RON 95, but what about diesel? We are still not satisfied.’ I hear these voices, and we want to help reduce diesel prices too but it is not as simple as just announcing a lower figure,” he explained. “We have to look at global supply levels, import costs, and how much we can afford to subsidise without causing other economic problems. Sometimes, the issue is not just money; it is also ensuring there is enough supply in the market to meet demand if we adjust the price structure.”

Under the current Budi Madani Diesel (Budi Diesel) scheme, the price of diesel stands at RM2.10 per litre a rate that Anwar noted is also among the most affordable globally, thanks to existing government support.

Caution Against Hasty Decisions

Anwar further warned that making impulsive decisions to cut fuel prices without proper study could do more harm than good in the long run. He said that while the government’s priority is to alleviate the rising cost of living, policies must be sustainable so that benefits can continue for years to come.

“One wrong move can destabilise our finances, and once that happens, it is the people who will suffer the most in the end. We are not holding back because we do not want to help we are doing this carefully so that whatever relief we provide can last and does not collapse after a few months,” he stated.

He called on the public to remain patient and understanding, adding that the administration is constantly reviewing its policies and looking for ways to improve the system. “We are working every day to find the best solutions. We want to make life easier for you, but we must also ensure that our country remains strong and stable, now and for future generations.”