Global Oil Prices Rise, Malaysia Retains Subsidized Fuel Prices

The Malaysian government has not reduced the subsidy for fuel even though the world oil price has increased. (Wikimedia - pratanti - https://www.flickr.com/photos/pratanti/3854788556/in/photolist-oUWqCK-6SCNkE-5zqnrm-s5xkYq, CC BY 2.0,)

JAKARTA - Global crude oil prices have started to rise due to Iran's war against the United States and Israel as well as disruptions in the Strait of Hormuz. However, Malay Mail, Friday, March 13, reported that Malaysia has so far not seen a major spike in the price of basic necessities, while the subsidized RON95 fuel price remains at 1.99 Malaysian ringgit per liter.

According to Malay Mail quoting Bernama, the Chief Executive of the Federation of Malaysian Consumer Associations (Fomca), Dr T. Saravanan, said the impact of the West Asian conflict on Malaysian consumers has not been felt directly. According to him, the influence usually comes gradually through the increase in transportation and logistics costs, not immediately at the consumer level. Therefore, the public is asked to remain calm, not to panic buying, and to be more careful in managing expenses.

Saravanan also said that at this stage there has been no major price increase that can be directly linked to the conflict. He assessed that the Malaysian Ministry of Domestic Trade and Consumer Affairs was still able to maintain market stability by monitoring prices and intervening so that basic necessities were available and the prices were reasonable. Even so, he warned that the protracted war could push crude oil prices higher and eventually put pressure on commodity prices.

In a special press conference on Wednesday, Prime Minister Anwar Ibrahim said Malaysia's oil supply was still under control. The government will continue to monitor developments in the Middle East and prepare measures to safeguard the interests of the people and the country. To prevent oil leaks and smuggling, Deputy Prime Minister Fadillah Yusof and relevant ministries were tasked with tightening supervision and enforcement.

Meanwhile, the Secretary-General of the Malaysian Community Intelligence Center, Azizuddin Ahmad, assessed that the initial steps of the government were appropriate for the current situation. He said that the supervision of the prices of basic necessities and more decisive action against hoarding and smuggling were important to contain the impact of the global conflict on the cost of living. Wadah also assessed that the prevention measures announced by the government could be an initial stronghold against the possibility of a global economic recession, and asked for open communication so that policy implementation runs smoothly.