Prime Minister Anwar Ibrahim has sounded the alarm regarding the possibility of RON95 petrol no longer being sold at a subsidised price for Malaysians in light of the ongoing Iran war.
Currently, subsidised RON95 is being sold for RM1.99 per litre to Malaysian-registered vehicles, while foreign-registered vehicles are charged RM2.67 per litre for unsubsidised fuel, a 10sen increase.
Can only last for 2 months
Speaking to reporters, Anwar said subsidised RON95 prices can be maintained for only the next two months in the current situation.
He added that if the Strait of Hormuz remains closed for an extended period, it could trigger an economic crisis.
“We will try to control the impact of the Iran conflict, including the price of subsidised RON95 petrol, which is currently maintained at RM1.99 per litre.
“We will also continue to monitor the situation as we can still sustain it for one to two months,” he said as quoted by Oriental Daily.
Warned everyone to be alert
Anwar urged civil servants, private sector employees, and businesses to remain vigilant about the potential impact of the escalating conflict between Iran, the US, and Israel, adding that the situation is “not encouraging.”
He said while US-Israel attacks on Iran are still within a controllable range in terms of its impact on the economy and regional geopolitics, it will inevitably cause a domino effect as about 200 ships are currently stranded in the Strait of Hormuz.
“Since ships have to take longer alternative routes, transportation costs will definitely rise. The government will take immediate measures as the economic impact will be unavoidable if this situation continues.
“Commodity prices, import costs for small and medium enterprises, and food prices are also expected to increase,” he warned.
The Strait of Hormuz, one of the world’s most important strategic waterways, was ordered to be closed by Iran after the country was attacked by the US and Israel last Sunday (Mar 1).
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