By Shikin Louis
KUCHING, March 14: Malaysia’s relatively lower petrol prices compared with neighbouring countries have helped keep domestic costs manageable but could also create opportunities for cross-border fuel smuggling, says Deputy Prime Minister Datuk Amar Fadillah Yusof.
He said the government has maintained the price of RON95 petrol to protect consumers from rising global oil prices and to keep the cost of goods stable in the short term.
“Alhamdulillah, our current situation is better than many neighbouring countries. We have been able to maintain our petrol prices.
“In other countries, petrol prices are much higher — in Singapore, it has reached around RM10 per litre, while in Indonesia and Thailand, prices are also high,” he said when officiating the Sumbangsih Santunan Kasih Seindah Syawal Programme at Samariang Service Centre in Petra Jaya today.
He warned that this price gap may tempt some to smuggle petrol across borders.
“While subsidies help Malaysians, the lower prices here may encourage smuggling. This is something we must monitor closely,” he added.
Fadillah explained that maintaining fuel subsidies comes at a huge cost, with petrol subsidies alone at about RM2 billion per month, while diesel adds another RM1.3 billion monthly, bringing the total to RM3.3 billion per month — nearly RM40 billion a year.
Despite these costs, the Petra Jaya MP said Malaysia’s situation is better than some neighbouring countries, allowing the government to maintain stable fuel prices and protect consumers from global oil price shocks.
He also called on the public to practise prudent energy use, including electricity consumption. Peninsular Malaysia relies largely on gas, oil, and coal for power, while Sarawak is less affected thanks to abundant hydroelectric resources.
“Even in Sarawak, we still use gas and coal. If we can use energy wisely and reduce consumption, it will help us save fuel and extend our resources,” he emphasised.
Also present was Deputy Minister in the Sarawak Premier’s Department (Law, MA63 and State-Federal Relations) and Samariang assemblywoman Datuk Sharifah Hasidah Sayeed Aman Ghazali. — DayakDaily
