New Straits Times-Apr 24, 2026

The national petrol subsidy, a perk stretching back to 1983, is a paradox. Malaysians get cheap, stable and consistent pump prices, while being shielded from the inflationary impact if fuel prices were to be floated. Before the war on Iran and closure of the Strait of Hormuz, the government spent RM700 million a month subsidizing RON95 petrol and diesel. But that manageable outlay has now skyrocketed to an unbearable RM3 billion a month. It is obviously unsustainable, even in the short term. Read more at: https://www.nst.com.my/opinion/leaders/2026/04/1425411/nst-leader-when-subsidies-fuel-smuggling

First published in New Straits Times