MELAKA: The government is prepared to absorb an increase in fuel subsidy costs, which could reach RM45 billion annually amid a surge in global crude oil prices, rather than pass the burden on to the people through higher fuel prices.

Prime Minister Datuk Seri Anwar Ibrahim said the government remained committed to maintaining the price of RON95 petrol at RM1.99 per litre despite international crude oil prices climbing to between US$120 and US$130 a barrel.

He said the move was aimed at shielding the public, particularly low- and middle-income groups, from the impact of rising global fuel prices and the resulting pressure on household expenses.

“If oil prices continue to surge, the cost borne by the government could reach between RM42 billion and RM45 billion a year. If we raise fuel prices in line with market rates, people would have to pay an additional RM2 or RM3, or at least RM5 a day.

“Imagine those who have to send their children to school and go to work themselves. That could mean an extra RM10 a day. It is better for the government to bear the burden than to burden the people, our parents,” he said at the ‘Sentuhan Kasih Madani’ Programme and the launch of the National Cost of Living Action Plan 2030 at the Hang Jebat Sports Complex in Krubong.

Anwar said global crude oil prices had nearly doubled from around US$70 a barrel previously, putting many countries under mounting cost-of-living pressures.

However, he said the government had chosen to continue absorbing a substantial portion of fuel subsidy costs to prevent consumers from facing steep petrol price increases if prices were allowed to float in line with market rates.

He also rejected the view that generous subsidies made the people overly dependent on government assistance, stressing that policies must take into account the realities faced by low-income households.

Anwar said the government would continue to balance efforts to drive economic growth with its responsibility to ensure that national progress translated into a better standard of living and greater well-being for the people.

He said the country’s economic success should not be measured solely by growth, investment and trade, but also by the tangible benefits it delivered in improving the people’s standard of living and well-being.

He said efforts to drive economic growth, including through mastery of emerging technologies such as artificial intelligence (AI) and semiconductors, must go hand in hand with addressing the people’s basic needs, particularly the cost of living, education, healthcare and employment opportunities.

“We are not talking merely about figures and statistics, but about people.

“The government’s approach is guided by the principle of ‘reaching for the sky while remaining rooted in the ground’, which requires the country to continue exploring new fields of knowledge and technology without neglecting human values, ethics, culture and the well-being of the people at the grassroots level,” he said.

Also present were Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali and his deputy, Datuk Fuziah Salleh. — BERNAMA