>Update FY2024–2026 operational cost models to include RON95 price scenarios up to RM2.30/litre
>Subscribe to official alerts from Malaysia’s Ministry of Finance (MOF) and Energy Transition & Public Utilities Bureau (ETPUB)
>Engage a locally licensed tax agent to document fuel expense deductibility positions under Section 33(1) of ITA 1967 amid subsidy volatility
English Summary
Malaysia's Prime Minister Anwar Ibrahim warned that if the Middle East conflict persists, RON95 petrol subsidies—currently holding the retail price at RM1.99 per litre—could reach RM24 billion by end-2026, costing up to RM2 billion monthly. This is a fiscal policy measure, not a statutory regulation, administered by the Ministry of Finance and Energy Transition and Public Utilities (ETPUB). No new tax, licensing, or compliance obligations are introduced; however, foreign businesses must monitor: (1) potential subsidy reductions triggering fuel price hikes, affecting logistics and production costs; (2) implications for input cost deductions under Income Tax Act 1967; and (3) budgetary revisions in the 2025–2026 federal budgets, expected October 2024 and October 2025. Affected sectors include transport, manufacturing, and import-dependent SMEs. No deadline applies, but real-time tracking of ETPUB notices and MOF circulars is essential for financial planning.
KUCHING: If the Middle East conflict persists, government subsidies to maintain the price of RON95 petrol at RM1.99 per litre could spiral to RM24bil by the end of 2026, says Datuk Seri Anwar Ibrahim.The Prime Minister said on Friday (March 13) that this was based on calculations that increasing petrol subsidies alone could cost the government RM2bil a month. Related stories:RON95 subsidy enforcement ramped upSoaring oil prices push Malaysia’s fuel subsidy bill into the billionsGovt to keep subsidised RON95 price at RM1.99 a litre, no drastic changes planned Follow us on our official WhatsApp channel for breaking news alerts and key updates! Tags / Keywords: Subsidies , RM24bil , RON95 , Petrol , Diesel , Oil Prices , Middle East , Iran , Sarawak Report a mistake What is the issue about? Spelling and grammatical error Factually incorrect Story is irrelevant This field is mandatory. Please provide details of the report. Email (optional) Please enter valid email. Report issue Cancel Invalid captcha response. Please re-try again. Thank you for your report! Related News Sabah & Sarawak 10h ago Sabah leaders oppose federal appeal over 40% revenue entitlement Sabah & Sarawak 14h ago Tuaran solar project helps Sabah reduce reliance on conventional energy sources, says Hajiji Sabah & Sarawak 9h ago Sabah unveils updated guidelines, new framework to boost renewable energy adoption