PUTRAJAYA, May 4 — Prime Minister Datuk Seri Anwar Ibrahim today urged civil servants to play their role in explaining the fiscal strain facing the government amid a global energy shock triggered by conflict in the Middle East.

He said the government could be paying up to RM5 billion a month for petrol subsidies alone based on current oil prices, as he reiterated previous assurances that RON95 petrol and diesel prices would remain low despite the ballooning subsidy bill.

Despite attempts to mitigate the impact of rising oil prices, Anwar conceded that the prices of some basic goods had increased.

“Do we have a problem with living cost? Yes, I am not denying it,” he said at the Ministry of Natural Resources and Environmental Sustainability’s monthly assembly here.

“Must we manage this wisely? Yes. Can we afford to provide full assistance? I would say partially yes, because we cannot give total help because as you can see, even Budi95 has reached (RM5 billion) a month,” Anwar added.

“So as for Budi95, we will try our best to keep it because the number of those using it is too big.”

Malaysia’s fuel subsidy bill for April 2026 is estimated at approximately RM7 billion, raising concerns over pressure on public finances as critics call on the government to rethink petrol assistance that also benefits top income earners.

Malaysia has one of the cheapest RON95 retail fuel prices in the world, at just RM1.99 per litre.

The Anwar administration has said petrol and gas supplies remain secure at least until June, but officials have hinted at the possibility of inflationary pressures creeping up as supplies of oil derivatives such as fertilisers remain disrupted by the shutdown of the Strait of Hormuz and export curbs elsewhere.

Malaysia imports phosphate used to fertilise food produce such as tomatoes and cucumbers, but exports urea.

Anwar’s Cabinet is expected to discuss cost-of-living issues at its meeting this Wednesday.

“Last Friday, I dined at a stall in Rawang. I asked the lady running the shop how business was, and she said it’s okay, business is good, but there’s a slight problem — every week there is a small price increase (for supplies),” Anwar said at the assembly.

“So, if it’s a little bit more for three weeks in a row, it starts to affect the shop. From what I heard, it certainly impacts small businesses. Therefore, I will bring this matter up during the Cabinet meeting this Wednesday.”