Malaysia’s fuel subsidy bill jumps to US$811 million amid Iran war

Malaysia’s fuel subsidy bill has surged more than fourfold in under a week due to the sharp spike in global oil prices triggered by the US-Israel war on Iran.The national monthly RON95 petrol and diesel subsidies have risen from 700 million ringgit to 3.2 billion ringgit (US$177.4 million to US$810.9 million), Prime Minister Anwar Ibrahim said on Sunday in an explainer video shared on social media.The disruption in the Strait of Hormuz, through which 20 per cent of the world’s oil supply ­passes, has tightened global supply.“Within less than a week, global oil prices surged from around US$70 to nearly US$120 per barrel,” Anwar said.A screengrab from the video Malaysian Prime Minister Anwar Ibrahim shared on social media showing Malaysia’s US$7 billion oil trade deficit. Photo: Facebook/anwaribrhimaofficialDespite being an oil-producing country, Malaysia remains dependent on imports, with nearly half of its supply coming through the affected route.In the post, Anwar said Malaysia exported crude oil worth about US$5.5 billion last year but imported almost US$12.6 billion, resulting in a deficit exceeding US$7 billion.