KUALA LUMPUR, March 22 — Prime Minister Anwar Ibrahim has explained that Malaysia is affected by rising global oil prices despite being an oil-producing nation due to disruptions in global supply routes.
He said tensions in West Asia have impacted the Strait of Hormuz, a key global shipping lane, causing supply shortages and price spikes.
Nearly half of Malaysia’s oil supply passes through the route, while the country imports more oil than it exports.
To cushion the impact, the government has significantly increased fuel subsidies from RM700 million to RM3.2 billion within days.
Subsidy schemes such as BUDI95 and BUDI Diesel ensure consumers and businesses are shielded from full market prices.
Anwar stressed that protecting public welfare remains a priority amid ongoing global uncertainty and volatile energy markets.
