KUALA LUMPUR, March 11 — Credit rating agency Moody’s Ratings expects expect high energy prices will boost Petroliam Nasional Bhd’s (Petronas) upstream earnings.

It said in a statement today that higher petroleum-related revenues provide additional mitigation amid volatility in global oil prices.

“Historically, Petronas upstream earnings accounted for the majority of its profits. Petronas has budgeted RM20 billion in dividends for 2026, although future distributions could increase if earnings exceed its expectations,” it said.

Meanwhile, Moody’s said retail prices for certain fuels in Malaysia are controlled to shield consumers from volatility in global oil prices.

It noted that fuel subsidies are funded by the government. Sustained high energy prices could pressure public finances.

However, the shift toward more targeted petrol and diesel subsidies over the past two years should help limit potential increases in the subsidy bill.

“RON95 petrol is sold to eligible Malaysians at RM1.99 per litre, subject to a monthly cap of 300 litres per person. Diesel prices are also regulated with differentiated caps across regions and sectors,” it added.