Malaysia spending S$2.6 million an hour for subsidised petrol

MALAYSIA: Malaysia’s government shoulders a heavy fuel subsidy burden of RM8.28 million (S$2.6 million) per hour, or RM2,300 per second, amid Middle East supply disruptions. Crude oil prices surged past US$110 (S$140) per barrel in March, pushing subsidies from RM6 billion (S$1.94 billion) to RM7 billion by April. Officials warn the commitment is unsustainable, with global supply recovery expected to take months.

Additionally, Malaysia’s work-from-home initiative for government agencies and GLCs has not eased traffic congestion as intended. Despite efforts to cut fuel use, reports show Kuala Lumpur remains plagued by bumper-to-bumper jams. Observers note that commuting patterns have barely changed.

However, social media users remain sceptical of the government’s reported subsidy figures. On X, a citizen questioned whether the numbers cited were rhetorical or actual spending, further asking if the Malaysian government purchased the current subsidised oil after February 27, or if the supply came from earlier stock bought at lower prices.

Others argue the government must continue subsidising fuel, as inflation in Kuala Lumpur had already risen before the war. One noted that spending has increased for most households and boldly suggested the government stop collecting taxes altogether if it cannot sustain the subsidy programme.

Additionally, another highlighted that the Inland Revenue Board of Malaysia collected RM203 billion (S$65 billion) in 2025. He argued this shows the government can afford to maintain subsidies, suggesting the best approach is to reduce spending on redundant agencies rather than cutting fuel support. 

Another citizen boldly argued that the government should stop portraying fuel subsidies as though they come from its own pocket. He stressed that Malaysia’s poor depend heavily on the fuel subsidy and added that the government would not collapse if subsidies were maintained even for several more years.

Many Malaysians believe fuel subsidies can continue despite the war, pointing to Petronas selling refined oil globally as proof that the country can sustain itself. At the same time, work-from-home initiatives have not expanded as widely as the government hoped, leaving most people commuting daily. With traffic congestion persisting, reliance on subsidies remains a pressing issue for households.

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