Malaysia fuel subsidy bill jumps to US$811 million after oil price surge
Mar 23rd 2026 · Malaysia
Prime Minister Anwar Ibrahim said monthly petrol and diesel subsidies climbed to 3.2 billion ringgit (about US$810.9 million) from 700 million ringgit after global oil prices surged following disruptions in the Strait of Hormuz.
- Monthly RON95 petrol and diesel subsidies rose from 700 million ringgit to 3.2 billion ringgit, equal to about US$177.4 million to US$810.9 million.
- Global oil prices rose from around US$70 to nearly US$120 per barrel in less than a week, tightening supply.
- Disruptions in the Strait of Hormuz amid the conflict around Iran reduced available oil flows, affecting Malaysia's imports.
- Despite being an oil producer, Malaysia imports nearly half of its oil supply through the affected route.
- Malaysia exported crude worth about US$5.5 billion last year and imported about US$12.6 billion, creating a trade deficit of more than US$7 billion.