WHILE Prime Minister Datuk Seri Anwar Ibrahim reassures Malaysians that there will be no oil supply crisis, economist Dr Geoffrey Williams emphasised that greater measures are urgently required to manage fuel consumption and control the escalating subsidy bill.
Williams highlighted that petrol and diesel use must be carefully regulated to stretch existing supplies and reduce government expenditure.
“This is why work-from-home arrangements for both the public and private sectors are essential. This could cut 25–30 per cent on petrol consumption, helping to spread out supplies and reducing subsidies by RM1 billion,” he told Business Times today.
He cautioned that if fuel subsidy spending rises to RM60 billion, it would surpass the RM46.5 billion allocated for public healthcare, creating a major fiscal burden.
Such an increase, he warned, could force the government to consider spending cuts, delay projects, raise taxes, or increase borrowing.
Addressing potential inflation concerns, Williams noted that subsidised petrol and diesel prices mean there should be no immediate inflationary pressure.
“Import prices may be affected because higher oil prices push up prices of imports. However, the ringgit is strong and so import prices are in check. The danger is that inflationary expectations are being pushed by businesses complaining that their costs are rising, when in fact they are not,” he explained.
Williams further urged that the current energy situation should act as a catalyst for long-term reforms, with the immediate priority being the introduction of work-from-home arrangements across the private sector and state governments to reduce fuel demand and ease the financial burden on the nation. - April 7, 2026
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