Govt won't hike RON95 price amid Iran-Israel hostilities: PM
Prime Minister Anwar Ibrahim assured that the government will not raise the price of RON95 petrol, even if there is a sharp increase in global crude oil prices due to geopolitical tensions involving Iran and Israel.
He said that although the price increase benefits Petronas, the government aims to avoid burdening the people with higher fuel costs.
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The Star
42 minutes ago
- The Star
‘RON95 subsidy cut first'
KUALA LUMPUR: The government will prioritise the rationalisation of RON95 petrol subsidy this year before introducing a carbon tax in 2026, says Finance Minister II Datuk Seri Amir Hamzah Azizan. He said Malaysia must first address the issue of fuel subsidies, particularly those involving the energy sector, before implementing the carbon tax. The government had previously announced plans to roll out a carbon tax targeting the iron, steel and energy industries by 2026, as outlined in Budget 2025. 'As we embark on this transition, we must ensure that no unintended consequences are embedded within our system. 'For instance, Malaysia has yet to implement a carbon tax as part of its policy framework. While it is scheduled for rollout by 2026, there are important precursor steps we must take. 'One major issue is the existing distortions in the system, especially the subsidies provided to the energy sector. 'A key objective now is to begin scaling back these subsidies. It doesn't make sense to impose taxes on one side while simultaneously providing subsidies for petrol, diesel and other fuels.' ALSO READ: 'RON95 rationalisation to proceed' Amir Hamzah made these remarks during a session titled 'Delivering Malaysia's Energy Transition' where he was a panellist alongside Deputy Energy Transition and Water Transfor-mation Minister Akmal Nasrullah Mohd Nasir. The session was chaired by Tan Sri Abdul Wahid Omar, a senior independent and non-executive director of IOI Corporation Bhd, Bernama reported. He also emphasised that subsidy rationalisation is a critical step toward establishing a strong foundation for sustainable mechanisms and policy frameworks. 'As a result, we can expect the introduction of structured measures, including climate action frameworks, robust measurement tools and ultimately, the implementation of a carbon tax to support these initiatives. 'If we want this transition to be sustainable and impactful, the entire system must respond. It cannot be driven by isolated announcements or standalone policies. 'The challenge for the government is to tie everything together coherently and effectively,' Amir Hamzah added. On Monday, Prime Minister Datuk Seri Anwar Ibrahim said the adjustments involving the price of RON95 petrol would not affect 85% to 90% of the population. Anwar said the government's move towards subsidy rationalisation is a critical step to ensure national resources are channelled effectively to benefit the lower-income group.
The Star
an hour ago
- The Star
RON95 price will not be raised, assures Anwar
ISKANDAR PUTERI: The price of RON95 petrol will not be raised, even if there is a sharp increase in global crude oil prices due to geopolitical tensions involving Iran and Israel, assures the Prime Minister. Datuk Seri Anwar Ibrahim said that although the price increase benefits the national petroleum company, the government aims to avoid burdening the people with higher fuel costs. Any future adjustments will be made carefully, taking into account the needs and financial capacity of the people, he told a press conference after a closed-door meeting with Johor PKR leaders and members. The price of RON95 for June 19-25 remains RM2.05 per litre. Anwar said the recent increase in global oil prices is due to sudden changes in the international market, despite prices previously remaining at relatively low levels. He said fluctuations in oil prices are a common occurrence, but the latest spike was particularly abrupt, triggered by the recent Israeli military assault on Iran. 'Oil prices go up and down. The increase this time has been quite sharp. 'This hike is partly due to increased demand and contributes to national revenue. However, we are not raising domestic fuel prices,' he said. The Prime Minister also said that a detailed explanation will be provided regarding the implementation of the review and expansion of the Sales and Service Tax (SST) scope which will take effect on July 1. He said the government acknowledged there has been confusion regarding the implementation, but gave assurance that the government's initiatives will not burden the lower-income group or the M40. 'We will give an explanation. Sometimes, general statements, such as saying bananas will be subjected to SST, cause confusion. Actually, it refers to imported bananas. 'But I agree we need to clarify this because what is important is that we do not want to burden the lower-income group or the M40,' he said.
The Star
an hour ago
- The Star
PM: JS-SEZ stands out globally due to trust and stability
ISKANDAR PUTERI: The Johor-Singapore Special Economic Zone (JS-SEZ) stands out globally due to the strong trust and cooperation between Malaysia and Singapore, as well as the zone's political stability and policy clarity, says Datuk Seri Anwar Ibrahim. 'Look at this region, this SEZ. It would not have happened if the two governments, the two systems, do not share common interests in uplifting both countries. 'This is not an ordinary SEZ. You name me any economic zone that involves two countries based on total trust and working together as a team to uplift both societies and countries. 'And therefore I give credit not only to Malaysian leaders in Johor, but also our Singapore friends who have been articulating the support,' the Prime Minister said in his speech during the closing ceremony of the Nikkei Forum here. While many countries offer better incentives than the JS-SEZ, he pointed out that not many have a politically stable system, a strong coalition, willingness to acknowledge past blunders and commit to clear policies moving forward. 'That is why the JS-SEZ is now known internationally, globally, as a new dynamo, because of this collaboration, infrastructure in place and because it is politically stable with clarity of policies,' he said. Anwar, who detailed all the wars and turmoil around the world, said that Asean happens to be one of the most peaceful regions in the world which is vibrant and dynamic economically. He said that trade and investments remain paramount and must be based on the multilateral arrangements. The Prime Minister described Malaysia's relationship with China as very close, adding that not many countries could record the visits of China's President Xi Jinping and Premier Li Qiang within a short span if relations were not extremely close. 'As a trading nation, we need all the investments, support, trading, and transfer of technology that China can offer, as the Japanese have offered for decades in the past,' he added.
