Kuala Lumpur: Petroliam Nasional Bhd (Petronas) has welcomed the rationalisation of petrol subsidies, noting that such subsidies are unsustainable, said Petronas president and group chief executive officer Tan Sri Tengku Muhammad Taufik Tengku Aziz. He stated that petrol subsidies hinder the country’s energy transition goals by distorting supply and demand through the misallocation of resources.

According to BERNAMA News Agency, mechanisms such as price discovery, energy efficiency, and subsidy reform are being prioritised as part of the government’s broader reform agenda. This sentiment was echoed at the Energy Asia 2025 press conference, where representatives from various regions agreed that subsidies are not sustainable and do not support energy transition goals. The press conference took place today, in conjunction with the three-day Energy Asia 2025 conference.

On the topic of carbon tax, which is slated to be implemented next year, Tengku Muhammad Taufik noted that the region is clearly moving toward pricing in externalities. He mentioned that discussions are ongoing on how to implement carbon pricing and carbon taxes in a more uniform manner. A key point raised during the discussion was that as the costs of these externalities become more harmonised, transparent, and liquid, businesses will be better equipped to incorporate carbon pricing and taxation into their feasibility assessments, allowing for more informed economic planning.

The Energy Asia 2025 conference, themed ‘Delivering Asia’s Energy Transition’, will be held from June 16 to 18. It will serve as a crucial moment for Malaysia and the region to assess progress towards energy transition objectives and reinforce national commitments to achieving net-zero goals. The conference comes at a critical juncture in economic diversification and sustainable development, as nations transition from traditional oil to renewable energy and embrace new technologies such as hydrogen and carbon capture.