KUALA LUMPUR: Since the prices of oil have increased globally following the conflict in West Asia that was caused by the attack of Israel regime and United States against Iran, many people have asked why the prices of oil in Malaysia have been affected despite Malaysia is an oil producing country.
Prime Minister Datuk Seri Anwar Ibrahim said the cause of the rise in oil price is due to the Strait of Hormuz being the main global oil route that is affected from the conflict.
“When the route has been disturbed, the global oil supply becomes limited and the price increases.
“Malaysia is also affected as 50 per cent of the national oil supply passes through the Strait of Hormuz. Even though Malaysia produces oil, in reality we import more than export oil.
“To protect the people, the government’s subsidy has increased around RM700 million to RM3.2 billion within one week.
“The Malaysians including majority business people are not required to pay the exact market price because the subsidy has been channelled via BUDI MADANI RON95 (BUDI95) and BUDI Diesel,” he said in his Facebook post, Sunday.
According to Anwar, as the global situation becomes more uncertain, the efforts to protect the welfare and the prosperity of the people remains the priority of the MADANI Government.
