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Government Shoulders RM1.25 Billion LPG Subsidies for Early 2026

Kuala lumpur: The government has borne almost RM1.25 billion in liquefied petroleum gas (LPG) subsidies for the period from January to May 2026, said the Ministry of Finance (MOF).

According to BERNAMA News Agency, in a written answer dated July 29 issued today at the Dewan Negara, the ministry detailed that RM1.02 billion was allocated for LPG subsidies in Peninsular Malaysia, while Sabah received RM118 million and Sarawak RM102 million. The government is currently implementing targeted subsidies for selected petroleum products to assist citizens in subsistence struggles and ensure the stability of essential sectors amid challenging geopolitical conditions. LPG is one of the products currently subsidized by the government.

The ministry provided this information in response to Senator Datuk Dr. Mustafa Musa's inquiry regarding LPG subsidy expenditure and measures to address market leakage. The government emphasizes proactive monitoring of the subsidized LPG supply chain to ensure subsidies reach eligible users, reduce leakage, and protect national supply. Furthermore, strict enforcement measures are being enhanced through strategic collaboration with the Ministry of Domestic Trade and Cost of Living and other enforcement agencies to prevent leakage and guarantee that subsidies are directed only to eligible recipients.

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