RON95 petrol subsidy rationalisation to proceed, says Anwar

KUALA LUMPUR: The RON95 petrol subsidy rationalisation exercise will proceed as planned, says Datuk Seri Anwar Ibrahim.

The Prime Minister made this announcement amidst a surge in global crude oil prices following the Israel-Iran conflict.

"There is no issue of raising the price of petrol for the vast majority of up to 85% to 95% of our people. Will we do it? Yes, because subsidy rationalisation is critical for our nation.

"We want sufficient resources to help the poor, enhance education quality, and provide better public services, including health," he said today after launching Energy Asia 2025.

Anwar criticised the opposition for creating a negative narrative about the government's proposed subsidy rationalisation exercise.

"Whatever the opposition says is just a desperate gimmick to show that people are facing hardship. There is more negative news from them when we need encouraging news to propel our economy," he said.

Asked if ongoing Middle East conflicts and rising global crude oil prices would affect the nation's economy and government coffers, he said it would not have an adverse impact for now.

"For now, I have discussed this with the secretary-general of the Organisation of the Petroleum Exporting Countries (OPEC) and leading players other than Petronas, Total, ENI, and Aramco.

"They are monitoring the situation very closely, but it does not necessarily adversely affect the industry and price mechanism. We hope that things can be resolved much earlier," he said.

Last Friday, global crude oil prices surged more than 9% to about US$75 per barrel following Israel's pre-emptive strike on Iran.

Prior to the attack, global crude oil prices had fluctuated and dropped below US$65 per barrel last year.

Meanwhile, Anwar urged the US, European Union, and other nations to pressure Israel to end its attacks on Iran and prevent further retaliation.

He said he understood Iran's retaliatory defensive response in light of Israel's aggression towards several of its neighbours.

He emphasised that both countries must end their hostilities to ensure peace.