Malaysia

Fuel supply stable for now, but risks loom if conflict persists, says Anwar

The Prime Minister warns that prolonged geopolitical conflict could strain Malaysia’s fuel subsidies and impact households nationwide, even as current supply remains stable

Updated 5 months ago · Published on 05 Apr 2026 5:40PM

Fuel supply stable for now, but risks loom if conflict persists, says Anwar
“If the situation does not change in the next one or two months — its effects will reach every village in this country, believe me,” Anwar says - April 5, 2026

MALAYSIA’S petrol and diesel supply remains stable for now despite mounting geopolitical tensions, but the government has warned that prolonged conflict could trigger widespread economic consequences affecting households across the country.

Prime Minister Datuk Seri Anwar Ibrahim said the situation is currently under control, with the government continuing to cushion the impact of rising global oil prices through subsidies.

However, he cautioned that the resilience may not last if the conflict drags on.

"This (war) — if the situation does not change in the next one or two months — its effects will reach every village in this country, believe me. I pray that it can be resolved," he said during a programme with FELDA settlers at FELDA Semenchu today.

Anwar revealed that the government is currently spending nearly RM6 billion per month to sustain fuel subsidies and related assistance, ensuring that Malaysians are shielded from immediate price shocks.

He warned that if current conditions persist, total subsidy expenditure could surge to as much as RM60 billion over a 10-month period, placing significant strain on the country’s fiscal position.

Despite being an oil-producing nation, Malaysia still imports about 50 per cent of its fuel needs, leaving it exposed to global price volatility and supply disruptions.

The Prime Minister said the government is closely monitoring developments and will take necessary measures to maintain fuel supply stability and price control for as long as possible.

He also highlighted that Malaysia’s firm diplomatic stance, particularly in response to attacks on Iran, has helped ensure that Malaysian vessels continue to pass through the strategically critical Strait of Hormuz, safeguarding the country’s energy supply chain.

Anwar pointed out that other countries have already been more severely affected by the crisis, with some forced to shut down hundreds of petrol stations due to shortages.

"Besides that, there are countries that have had to limit petrol purchases to certain amounts and set specific days for fuel purchases.

"Malaysia is still holding on. Although there is pressure, we have not reached the level of other countries that have had to close hundreds of petrol stations," he said. - April 5, 2026

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