PUTRAJAYA: On Monday (March 9), Malaysian Prime Minister Anwar Ibrahim underlined the commitment of the government to keep the price of RON95 fuel, which is heavily subsidised, will stay at RM1.99 (S$0.64) in spite of oil prices, which have fluctuated due to the conflict in the Middle East.
Singaporeans, in comparison, pay a commercial rate for 95-octane fuel. At present, it costs approximately S$2.92 to S$3.35 per litre before discounts.
Yesterday morning, the price of crude oil reached a high of US$120 per barrel (S$152.71), but plummeted later in the day after United Stated President Donald Trump announced that he was thinking about taking control over the the Strait of Hormuz, one of the most strategically important choke points in the world, as it is where 20 per cent of global oil and significant amounts of liquified natural gas (LPG) pass daily.
Since the United States and Israel began bombing Iran on February 28, and Iran has retaliated, the Strait of Hormuz has effectively been closed, which has led to an increase in oil prices and worries over rising living costs all over the world.
Asia, which is largely dependent on oil from the Middle East, has been particularly affected.
The Malaysian Prime Minister, however, sounded a reassuring note when he spoke at the Ministry of Domestic Trade and Cost of Living’s assembly.
“Today, oil prices have risen by up to US$100 (RM396.60) per barrel, yet we have maintained the RON95 price at RM1.99. We will continue to make every effort to ensure that this does not burden the public,” Malay Mail quoted him as saying.
He added that the country’s living costs would remain under control.
Read related: Foreign drivers who pump RON95 in Malaysia may face penalties from April 1
Nevertheless, he warned of the effects of the closure or reduced traffic at the Strait of Hormuz, saying that it would have a “significant” impact on the global supply of oil and transportation costs.
“The world’s oil and shipping routes run through these waters. Any disruption would carry consequences far beyond the region,” the Prime Minister said.
He added that the country is prepared to support efforts to negotiate a ceasefire in the region, and said that the global community must take action before the tensions deepen even further.
Last Friday, PM Anwar had said that the price of RON95 may stay at its current price for up to two months.
“We will try to control the effects of the Iranian conflict, including for RON95,” the Star quoted him as saying. /TISG
Read also: How Singapore’s refineries & bunkers stabilise oil prices during a conflict in the Middle East
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