Kuala lumpur: The government is expected to bear almost RM40 billion in petroleum product subsidies this year as a result of the increase in global oil prices following the West Asia conflicts, according to the Ministry of Finance (MOF).

According to BERNAMA News Agency, the MOF said the government had borne subsidies of nearly RM800 million per month for RON95 and diesel in January and February 2026, before these costs rose to around RM5 billion per month in March and April 2026.

The MOF's written response, posted yesterday on the parliament website, stated that if the current market price remains, the government is expected to bear total subsidies on petroleum products of RM40 billion for 2026. This was in response to a question from Salamiah Mohd Nor (PN-Temerloh) who inquired about the latest allocation amounts for petrol and diesel subsidies.

This substantial increase in subsidy allocation allows Malaysian citizens aged 16 and above to purchase RON95 petrol at a subsidised price of RM1.99 per litre. The MOF assured that the country's petroleum supply remains stable and sufficient.

The MADANI Government has committed to strengthening long-term supply security measures and implementing targeted subsidies while the global supply crisis continues.