Energy

Govt Won't Rush Into Hiking Fuel Prices Despite Mounting Pressures, Says Anwar

The Star
The Star•Apr 5, 2026

Why It Matters

Keeping fuel prices stable cushions households from inflationary shocks, but strains the budget and tests the government's ability to fund larger infrastructure projects.

Key Takeaways

  • •Government resists immediate fuel price hike despite rising global oil costs
  • •Subsidy of RM1.99 per litre maintained to protect low‑income groups
  • •Large infrastructure projects postponed; smaller, people‑focused projects continue
  • •Anwar emphasizes dialogue with states on diesel pricing and exemptions
  • •Federal support for Johor’s economic zone remains a priority

Summary

Prime Minister Anwar Ibrahim told reporters that Malaysia will not rush to raise fuel prices, despite mounting global oil pressures and domestic calls for adjustment. He reaffirmed the government's decision to keep the diesel subsidy at RM1.99 per litre, emphasizing that protecting low‑income households remains a priority.

Anwar outlined the economic rationale behind the stance: rising oil prices have already been reflected in past adjustments, and further hikes could exacerbate inflation. He noted that while large‑scale infrastructure projects may be deferred to preserve fiscal space, smaller, people‑centric initiatives will proceed. The prime minister also highlighted ongoing discussions with state leaders on diesel pricing, stressing exemptions for farmers, fishermen, taxi drivers and ride‑hailing services.

The leader cited recent meetings in Ipoh and Kuala Kangsar, where he heard grassroots concerns about fuel costs. He reiterated federal backing for Johor’s special economic zone and cross‑border projects with Singapore, positioning these as long‑term growth drivers that can tolerate short‑term price stability.

By holding fuel prices steady, the government aims to shield consumers from immediate cost spikes while navigating a tight budget and inflationary pressures. The approach signals a delicate balance between social welfare, fiscal prudence, and the need to keep strategic infrastructure on track.

Original Description

The government will not rush into raising fuel prices despite mounting economic pressures, says Datuk Seri Anwar Ibrahim.
The Prime Minister said Putrajaya is taking a cautious approach to subsidy rationalisation to avoid burdening the rakyat.

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