KAJANG, July 20 — Prime Minister Datuk Seri Anwar Ibrahim has defended the government’s fuel pricing policy, saying Malaysia’s ability to keep petrol prices at RM1.90 per litre comes despite the country still importing nearly half of petroleum requirements.
Responding to criticism saying he had failed to reduce fuel prices, Anwar said the government had to consider the long-term financial burden of subsidies and existing debts inherited from previous administrations.
“Some have claimed that the price should be reduced by as much as 50 sen. Today, even in Saudi Arabia, the price is around RM2.40 to RM2.50 per litre, despite the fact that it is one of the world’s largest petroleum producers with a very large production capacity.
“Malaysia, on the other hand, still imports almost 50 per cent of our petroleum requirements, yet we are able to sell petrol at RM1.90 per litre. Alhamdulillah,” he said in his speech during the engagement session with the prime minister and KSN with Central Zone civil servants here today.
He said the government currently bears around RM40 billion annually in subsidies for petrol and diesel, with the cost embedded every time consumers refuel their vehicles.
Anwar said while some may call for further reductions in fuel prices, the government must consider how such measures would be financed.
“People can say, ‘Just reduce fuel prices further.’ But who is going to pay for it? I do not want to continue increasing the country’s debt,” he added.
He also rejected claims that government debt was worsening, saying the debt-to-GDP ratio was declining, although repayment obligations remained high due to interest payments and previous liabilities.
Anwar said the government was still servicing debts linked to the 1Malaysia Development Berhad (1MDB) scandal, as well as liabilities involving institutions such as Tabung Haji and Felda.
“I cannot forget about it,” he said, referring to Tabung Haji’s previous financial problems, which he said involved debts amounting to RM10 billion.
On Felda, Anwar said he had inherited financial problems caused by past decisions, including losses linked to the establishment of FGV Holdings Bhd.
He cited the purchase of a hotel as an example, claiming it was bought for RM400 million despite an estimated value of only RM160 million at the time.
“I know this because the report was brought to me. When I took over, I was the one who had to resolve the issue,” he said while adding that the asset’s value could now be significantly lower if sold again.
He then said that highlighting past controversies would not necessarily make him “popular”, but the government had a responsibility to explain why current taxpayers are still bearing the consequences.
Anwar said the government is now required to allocate nearly RM980 million annually to settle Felda-related obligations.
He also questioned whether it was fair for the current administration to remain silent about past abuses of power, corruption and mismanagement that created those liabilities.
