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Advertisement Asia Fuel subsidy bill rises over 4-fold to US$813 million monthly as Malaysia absorbs soaring price: Minister The Malaysian government is in a strong position to absorb the higher costs due to the various fiscal reforms and consolidation measures implemented over the past three years, said Finance Minister II Amir Hamzah Azizan. A car being filled up with RON95 fuel at a petrol station in Malaysia. (Photo: CNA/Fadza Ishak) 13 Mar 2026 06:13PM (Updated: 13 Mar 2026 06:32PM) Bookmark Bookmark Share WhatsApp Telegram Facebook Twitter Email LinkedIn Set CNA as your preferred source on Google Add CNA as a trusted source to help Google better understand and surface our content in search results. Read a summary of this article on FAST. Get bite-sized news via a newcards interface. Give it a try. Click here to return to FAST Tap here to return to FAST FAST KUALA LUMPUR: The Malaysian government’s fuel subsidy bill is projected to surge over four-fold to about RM3.2 billion (US$812.8 million) per month, up from RM700 million previously, as global oil prices climb amid the escalating Iran war. Finance Minister II Amir Hamzah Azizan said on Friday (Mar 13) that despite the significant increase, the government will maintain the current prices of subsidised petrol and diesel.This means that the government will maintain the price of RON95 petrol at RM1.99 per litre under the BUDI95 subsidy scheme for eligible Malaysians. Amir Hamzah added that the government’s monthly petrol subsidy has increased to RM2 billion while the diesel subsidy has risen to RM1.2 billion per month. The minister stressed that the Malaysian government is in a strong position to absorb the higher costs due to the various fiscal reforms and consolidation measures implemented over the past three years. “As Prime Minister Anwar Ibrahim said, Malaysia has sufficient petrol and diesel supplies. Petronas and other companies are working to extend supply and unlike other countries, there is no disruption to domestic fuel availability,” he was quoted as saying by local news outlet Free Malaysia Today. Amir Hamzah was speaking at a press conference in Putrajaya following a special Cabinet meeting to discuss the Middle East crisis. “The country also has a stable gas supply, supported by domestic production, refinery capacity and storage. In terms of supply, the situation is stable,” he said.However, he added that Malaysia is still affected by the rising global prices and the government will ensure that its people are supported, noting that maintaining the current fuel prices has implications on the government’s budget. Oil prices held at around US$100 on Friday.Although Malaysia has the “fiscal space”, Amir Hamzah said that the conflict may last for an “uncertain period”. “As such, it is crucial to consider forward-looking measures that can reduce the current burden while ensuring that we use this (fiscal) space to implement sound reforms, what we call a ‘no-regret move’,” he was quoted as saying by The Star. Subscribe to CNA’s Morning Brief An automated curation of our top stories to start your day. This service is not intended for persons residing in the E.U. By clicking subscribe, I agree to receive news updates and promotional material from Mediacorp and Mediacorp’s partners. Loading File photo of Malaysia's Finance Minister II Amir Hamzah Azizan. (Photo: CNA/Zamzahuri Abas) Amir Hamzah said that the government is encouraging energy conservation measures in public offices, including reviewing work-from-home arrangements and adjusting air-conditioning settings, Free Malaysia Today reported. Anwar - who is also the finance minister - has ordered top civil service leaders in the country to conduct a comprehensive review of the work-from-home arrangements to ensure administrative consistency across the board, said Communications Minister Fahmi Fadzil. Fahmi, who is also the spokesperson for the unity government, said that Anwar has tasked the chief secretary to the government and the Public Service Department director-general to examine the policy’s feasibility and coordination.A decision is expected on Mar 17, he said. Earlier, Transport Minister Anthony Loke on Thursday said that airlines may need to suspend certain flight operations if fuel prices continue to rise due to the Iran war, noting that fuel accounts for nearly half of airlines’ operating expenses. Loke said that he had met airline management, airport operators, jet fuel suppliers and aviation authorities to coordinate efforts in addressing the conflict between the United States and Israel against Iran. “The transport ministry will engage with airport authorities and relevant stakeholders to support the sustainability of local airlines. Airlines will also share data with our aviation authorities to enable a more comprehensive risk assessment,” he said in a Facebook post. “All parties also agreed to meet weekly as this crisis remains volatile and requires rapid action in the event of new developments.” Separately, Anwar on Wednesday also announced precautionary spending controls due to the economic effects of the ongoing conflict. These include cancelling Hari Raya open houses hosted by government agencies and limiting overseas travels for ministers and officials. “All ministers and members of the administration, including departments, have been ordered to limit overseas trips, aside from those that are already scheduled and are compulsory to attend,” he said, as quoted by The Star.“This sends a message for more prudent spending.” Related: ‘We don't know what to do’: Eateries in India face cooking gas crunch sparked by Middle East war How exposed is Southeast Asia’s energy supply to the Iran war - who is most vulnerable and what’s next? Source: Agencies/ia(as) Newsletter Morning Brief Subscribe to CNA’s Morning Brief An automated curation of our top stories to start your day. 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