18/03/2026

WEDNESDAY | MAR 18, 2026

3 Count the cost, count the blessings

Ű BY QIRANA NABILLA MOHD RASHIDI newsdesk@thesundaily.com

o M’sians pay under RM80 for a full tank while neighbours fork out up to RM400; subsidised petrol keeps costs low, shield citizens from global fuel shocks

PETALING JAYA: Paying below RM80 for a full tank of petrol may feel normal for Malaysians – until they realise the same tank costs nearly RM400 just across the border in Singapore. For many, fuelling up is a routine chore, hardly worth a second thought. Yet a glance at the price tags in neighbouring countries reveals just how privileged Malaysian motorists are. At RM1.99 per litre for RON95 under the Budi Madani (Budi95) scheme, Malaysians continue to enjoy some of the lowest petrol prices in Southeast Asia. In Cambodia, petrol exceeds RM5 per litre. In Thailand, a tankful costs roughly RM220. For a 40-litre tank, the Philippines sees drivers paying around RM208, Indonesia about RM172 and Singapore almost RM400. By PETALING JAYA: Few Malaysians truly realise just how cheap fuel here is compared with neighbouring countries, thanks to government subsidies. Federation of Malaysian Consumers Associations or Fomca CEO Saravanan Thambirajah said most people only notice petrol prices when they rise locally, rarely appreciating Malaysia’s advantage regionally. “Low petrol prices give households breathing space, especially for those who rely on cars to get to work, send children to school or run daily errands. “But over time, people can become overly reliant on these low prices and structure their spending around them. When prices rise, it can hit household finances like a shockwave.” Despite these advantages, Saravanan warned that over time, people can grow dependent on low prices, taking them for granted and spending around them. “Because of subsidies, many assume prices will remain stable. Few have adjusted their behaviour – like reducing fuel usage or planning more efficient travel. “If prices increase, the impact is not just on fuel but also on transport, deliveries and eventually the price of food and basic goods.” He stressed that any changes must be gradual and transparent. “Consumers may accept a gradual reduction of subsidies – but only if they see clear benefits. People will ask, ‘Where are the savings going?’ If the government can show that the money is used to improve public transport or support lower-income groups, acceptance will be much higher.” Saravanan also highlighted how cheap petrol fuels car dependency. “Affordable petrol makes driving the easiest, most convenient option. It leads to more cars on the road, more congestion and less public transport use. Over time, people drive everywhere, even for short trips, because it feels more practical than using buses or trains.” On policies aimed at reducing car Ű BY HARITH KAMAL newsdesk@thesundaily.com

PETALING JAYA: Malaysians are enjoying one of the region’s lowest petrol prices, with RON95 steady at RM1.99 per litre. The government’s subsidy cushions households from global oil shocks, keeping daily expenses – from commuting to grocery bills – more manageable. Economists told theSun the policy is a key measure to ease the cost of living, ensuring stability in daily expenses while sustaining economic activity. “Fuel subsidies are certainly significant to consumers. However, they come at a high cost to the government, which may have long term implications for the rakyat, ” said Universiti Malaya Social Wellbeing Research Centre research fellow Dr Zulkiply Omar. “The higher fuel prices in neighbouring countries reflect the increasing cost pressures faced by governments in maintaining subsidies.” Zulkiply added that differences in pricing structures can also have wider consequences. “Price differences between countries in the region can encourage smuggling, while differences within the domestic system can lead to leakages.” Putra Business School economist Assoc Prof Ida Md Yasin said Malaysia’s approach keeps inflation in check. “We are among the cheapest in Asean. So, the government subsidy is clearly significant because it keeps fuel affordable. When fuel prices remain stable, inflation is not as high added. Delivery rider Mohd Faizal Azman, 28, said the subsidy is essential for those whose income depends on the road. “If petrol prices were like in other countries, I don’t think I could continue doing this job. My daily expenses would increase a lot and it would directly affect my earnings.” Faizal also acknowledged the subsidy’s limits. “Of course it helps us now, but I also understand the government has to spend a lot. If one day they reduce it, people like me will feel it immediately,” he said, adding that he tries to manage fuel usage carefully. Retiree Suhirley Arfiza Khalil, 52, echoed the sentiment, noting that low petrol prices have long been taken for granted. “For many years, Malaysians have enjoyed low petrol prices, so it has become something we expect. But Ű BY FAIZ RUZMAN newsdesk@thesundaily.com

comparison, a full tank in Malaysia comes to just RM79.60. Auditor Nur Afiqah Rahman, 26, said the disparity is eye-opening. “I knew we were paying less, but I didn’t expect it to be that big of a difference. When you compare paying below RM80 for a full tank here to almost RM400 in Singapore, it really makes you think.” For Afiqah, the subsidy quietly eases daily expenses, especially her commute. “Petrol is something we use almost every day, so having it at a lower price definitely helps. It may not seem obvious, but it reduces the overall burden of living costs,” she usage, he said Malaysians may be willing to change – but only if better alternatives exist. “Public transport in many urban and suburban areas is still unreliable, crowded and poorly connected. Last mile connectivity and safety remain major concerns. “Employees are penalised for delays beyond their control, affecting productivity and job security. Until these issues are fixed, expecting people to accept higher petrol prices or drive less is unrealistic.” He urged more targeted subsidies and major improvements in public transport. “Fuel subsidies should focus on those who really need help, while reducing waste. Public transport must be reliable, safe, widely covered and coordinated with employers. Low petrol prices help consumers in the short term, but they create long-term challenges.” Saravanan reiterated that low petrol prices help consumers in the short term but they create long-term challenges. “Any future changes must balance cost-of-living concerns with the need for a sustainable, practical transport system that truly works for ordinary Malaysians. “Pricing changes should be gradual, clearly explained and accompanied by public awareness on the real cost of fuel and the long-term impact of subsidies.” Anxiety over petrol and diesel prices in Malaysia has surged amid global oil market uncertainties, particularly following the conflict in Iran and concerns over a potential closure of the Strait of Hormuz. Consumers are worried that subsidies may not be enough to shield them from rising fuel costs. Prime Minister Datuk Seri Anwar Ibrahim reassured Malaysians that the country’s fuel supply is secure until May despite global price pressures and that subsidies will remain in place for now. Last week the government announced new retail prices for unsubsidised fuel – RON97 rose by 60 sen to RM3.85 per litre, while unsubsidised RON95 jumped 60 sen to RM3.27 per litre.

At RM1.99 per litre for RON95 under the Budi95 scheme, Malaysians continue to enjoy some of the lowest petrol prices in Southeast Asia. – SYED AZAHAR SYED OSMAN/THESUN

Low prices cushion for households

to be ready for changes. Fuel prices are going up globally due to conflicts and Malaysia is not the only country feeling the impact.”

when you compare with other countries, you realise it is actually a privilege. “At the end of the day, people have

Easing daily burden, sustaining support for the rakyat

“When fuel costs are controlled, transportation and logistics costs become more stable. This helps prevent sudden increases in the price of goods, especially food and basic necessities, and helps control inflation.” He added that the policy also supports sectors dependent on daily movement. “In Malaysia, more controlled pricing gives stability not only to households but also to sectors such as logistics, e-hailing and small businesses that depend on daily mobility.” Abdul Khabir also pointed out that Malaysia continues to import refined fuel despite producing crude oil. “Producing crude oil does not necessarily mean we process everything domestically. In Malaysia’s case, some of our crude oil is more suitable for export. At the same time, it is more cost-efficient to import refined petrol from regional refining centres such as Singapore. “This is more of an economic decision and part of the global supply chain structure, not simply an issue of capacity or lack of resources.” Ida said Malaysia’s policy contrasts with other Asean nations that have cut subsidies. “In other countries, petrol prices are higher because subsidies have been reduced, exposing consumers to global price fluctuations. Malaysia’s policy reflects a deliberate choice to prioritise stability despite rising global costs. “The government is bearing a high subsidy cost because global oil prices have increased. It has been announced that prices have gone up and cannot be denied.”

because transportation and logistics costs within the country remain stable. “For now, inflation is still not very high, although we do not know how long this can be sustained.” Universiti Teknologi Malaysia economist Prof Dr Nanthakumar Loganathan said sustaining the subsidy comes at a steep cost. “The government will continue to maintain the subsidy price for a certain period, as it needs to spend around RM2 billion to RM3 billion per month on fuel subsidies. We are still maintaining lower prices to ensure Malaysians receive government support. The government is putting more effort for lower and middle income groups as the cost of living has increased.” He added that targeted measures such as Budi95 aim to ensure support reaches those who need it most. “Budi95 is good enough for the government and the rakyat . It protects the majority of users, although the government still needs to manage the cost as global prices increase. “The rakyat should understand that the government is bearing the subsidy. The more fuel we use, the more the government has to spend.” From a transport perspective, UiTM’s Malaysia Institute of Transport senior lecturer Dr Abdul Khabir Rahmat said subsidised fuel underpins daily mobility and economic activity. “When petrol prices are kept low, it directly reduces daily commuting costs such as going to work, sending children to school and other daily activities. At the same time, petrol has indirect effects.