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Joseph Sipalan

The cost of Malaysia’s subsidies for fuel at the pump is projected to rise by more than four times in the short term, the government has said, as it rushed to assure the public the country’s energy supply will not be disrupted even as the Iran war chokes global oil and gas shipments.
Fear of an energy crisis has engulfed much of Southeast Asia since the US and Israel launched air strikes on Iran on February 28, pushing Tehran to close the Strait of Hormuz – a vital waterway that handles about a fifth of the world’s oil and gas supply and energy deliveries from the Middle East to Asia.
Global crude prices have surged since the start of the war, with Brent crude prices spiking by 63 per cent to a high of US$119 per barrel on Monday before settling to about US$100 per barrel later in the week.
To cushion the blow on consumers and local businesses, Malaysia’s government on Friday said it would spend about 3.2 billion ringgit (US$812.8 million) a month to maintain the price of subsidised petrol and diesel in the short term.


“This will raise the cost of subsidies by [more than] 2 billion ringgit, compared to 700 million ringgit that was budgeted before this,” Second Finance Minister Amir Hamzah Azizan told a news conference.
“[The government] can bear the burden because of our prior fiscal reforms.”
Malaysia’s announcement follows earlier decisions by neighbours Indonesia and Thailand, both of which pledged to cap pump prices for a limited period as panic buying struck thousands of motorists fearing a sharp spike in fuel costs.
Amir said Malaysia’s supply of petrol, diesel and natural gas was sufficient to meet domestic energy needs, echoing Prime Minister Anwar Ibrahim’s announcement on Wednesday that there was enough stockpiled to last until May this year.
National energy giant Petronas and other major oil and gas firms operating in Malaysia were also working to secure shipments from other sources to ensure continued stability in the country’s energy supply, he added.
Amir, however, urged all Malaysians and companies in the country to actively reduce energy consumption, saying the government was considering mandating work-from-home arrangements to reduce fuel consumption from daily commutes and raising office air-conditioning temperatures to reasonable levels to cut electricity use.
“We will help with interventions such as covering a larger subsidy bill. But if oil prices continue to remain high, we may need a different approach,” Amir said.
“We don’t know how long this will last, so we are moving over the short term and preparing for the medium and long term.”

More than 2,000 people have died in the war as it approaches the two-week mark, with little sign of ending.
US President Donald Trump declared in a social media post on Friday that it was a “great honour” to destroy what he described as “deranged scumbags” in the “terrorist regime of Iran”.
Those killed by the US-Israeli joint air strikes include Iran’s former supreme leader Ali Khamenei and more than 170 people – mostly students – of a girls’ school in the country’s south.
The war has also spread across the Gulf. Dozens of people were reportedly killed on Friday by Israeli air strikes in Lebanon, where the Iran-backed Hezbollah militant group is based.
Seven US troops have so far died, with 150 others injured.


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Malaysia

Malaysia’s fuel subsidy bill to rise more than fourfold as Iran war drags on

A man fills his vehicle with diesel at a petrol station in Kuala Lumpur, Malaysia. Photo: EPA-EFE

A tanker sits anchored in Port Sultan Qaboos as the traffic is down in the Strait of Hormuz, amid the US-Israeli conflict with Iran, in Muscat, Oman, on Thursday. Photo: Reuters

Malaysia tightens borders to fight fuel smuggling amid global energy crisis

Fuel pump nozzles are pictured at a petrol station in Kuching, Sarawak. Malaysia will keep subsidised petrol prices unchanged despite the global increase in crude oil costs. Photo: AFP

Prime Minister Anwar Ibrahim says state-oil firm Petronas has assured the government that Malaysia’s petroleum product supply remains secure and sufficient until at least May. Photo: Pool via AP

A man pumps petrol near signs of gas prices at a petrol station in Seoul, South Korea, on Tuesday. Governments across Asia have begun moving to cushion the energy shock. Photo: AP

Death of Iran’s Khamenei sparks outrage and calls for restraint in Asia

Shiite Muslims mourn the killing of Iran’s Supreme leader Ayatollah Ali Khamenei in Srinagar, India-run Kashmir, on Sunday. Photo: EPA

People take part in a protest against the US and Israel in Karachi, Pakistan, on Saturday. Photo: EPA

Shiite Muslims mourn Khamenei’s death in Srinagar, India-run Kashmir, on Sunday. Photo: EPA

Cable thefts at key Malaysian train lines soar amid copper’s red-hot demand

Malaysia’s Mass Rapid Transit Putrajaya Line train. Photo: Shutterstock

Idzqandar Abu Bakar, Prasarana’s group chief for health, safety, security, environment and sustainability development, says surging copper prices and a lucrative scrap market have made cable theft more attractive to criminal groups. Photo: Iman Muttaqin Yusof

Copper cables at a factory. Prices of the metal have surged around the world over the past year. Photo: Shutterstock

Commuters in a Malaysian Mass Rapid Transit train. Cable theft cases targeting Malaysia’s train lines have risen over the past three years, causing inconvenience to commuters in some incidents. Photo: Shutterstock

Qatar’s LNG halt exposes Asia’s energy vulnerability

QatarEnergy’s liquefied natural gas production facilities in Ras Laffan Industrial City, Qatar, on Monday. Photo: Reuters

A man opens the bonnet of a liquefied natural gas truck to check the engine at the manufacturing facility in Pune, India. The halt in Qatar’s LNG output has sent buyers across Asia searching for replacement cargoes. Photo: Reuters

A navy vessel is seen sailing in the Strait of Hormuz on March 1. The closure of the strait has added to the energy crisis. Photo: AFP

An LNG tanker at the Negishi LNG Terminal in Yokohama. Japan and South Korea are more vulnerable to supply shock due to their heavier reliance on imported fossil fuels, analysts say. Photo: Reuters

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The government will spend about US$812.8 million a month to maintain the price of subsidised petrol and diesel in the short term


The government will spend about US$812.8 million a month to maintain the price of subsidised petrol and diesel in the short term.


Malaysia’s fuel subsidy bill to rise more than fourfold as Iran war drags on

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The government will spend about US$812.8 million a month to maintain the price of subsidised petrol and diesel in the short term

The government will spend about US$812.8 million a month to maintain the price of subsidised petrol and diesel in the short term