KUALA LUMPUR, July 14 (Xinhua) -- Malaysia can handle higher fuel costs and ensure sufficient supplies even as the conflict in the Middle East has reignited, Prime Minister Anwar Ibrahim said on Tuesday.
While the higher prices are expected to affect Malaysia's imports of oil, natural gas, and diesel, the real challenge is to ensure stable supplies, and Malaysia has worked to diversify its import sources, Anwar told parliament in response to questions on the government's efforts to mitigate disruptions.
Anwar pointed out that Russia has guaranteed long-term supply of diesel and oil to Malaysia, while Turkmenistan has granted Malaysia's state-owned oil and gas company Petroliam Nasional Berhad (Petronas) access to its gas fields, with exploratory drilling set to begin in December this year.
He added that the government has continued to provide subsidies on petroleum products, which could reach 40 billion ringgit (about 9.81 billion U.S. dollars) for 2026.
The government spent 800 million ringgit a month to subsidize the commonly used petrol grade RON95 and diesel for January and February, before reaching 5 billion ringgit per month for March and April, then easing to 4 billion ringgit in May as oil prices retreated, he noted. ■