Urumai chairman P Ramasamy has called for the establishment of a bipartisan parliamentary committee to investigate the possibility of using Petronas profits to subsidize petrol prices, following a sharp rise in global oil costs triggered by the conflict in Iran.
The former Member of Parliament noted that while the government’s monthly fuel subsidy expenditure is projected to rise to approximately RM3.2 billion from a previous RM700 million, this amount represents only a fraction of the national oil company’s net profit.
In a social media post, Ramasamy argued that the government must be prepared to utilize a larger portion of Petronas funds to manage the increased oil prices. He suggested that the war, which pushed global crude oil prices beyond US$100 per barrel, likely resulted in an increase in Petronas’s earnings from crude petroleum and liquefied natural gas sales, which could offset domestic price hikes.
Impact on Malaysian consumers
Ramasamy highlighted that the recent spike in domestic petrol and diesel prices has placed a significant burden on consumers, particularly those from lower-income households. Last week, the price of RON97 petrol rose by 70 sen to RM4.55 per litre, while unsubsidized RON95 reached RM4.37 per litre and diesel increased by 80 sen to RM4.72 per litre in Peninsular Malaysia.
He expressed concern that consumers, already facing price increases in other sectors, would struggle to cope under the current subsidy framework. He urged Prime Minister Anwar Ibrahim to implement systematic measures to alleviate the financial pressure on the public.
Global supply chain challenges
Addressing the situation earlier today, Prime Minister Anwar Ibrahim explained that despite being an oil-producing nation, Malaysia remains a net oil importer. He pointed out that nearly 50 percent of the country’s oil supply passes through the Strait of Hormuz.
To shield Malaysians from the full impact of global market volatility, Anwar stated that government subsidies have already been increased significantly. The current geopolitical situation remains tense as Iran closed the Strait of Hormuz following strikes by the US and Israel earlier this month, causing crude oil prices to surge.
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