Many people are still confused, Malaysia has its own oil resources, but why do petrol prices keep rising?
The answer is not simply about production costs, but a combination of global factors, geopolitical factors, and our dependence on imports.
Global Geopolitical Factors
One of the main factors comes from the world's geopolitical situation, especially the conflict in West Asia involving Israel, the United States and Iran.
This area has attracted world attention because it controls an important global oil route, namely the Strait of Hormuz.
Almost half of the world's oil supply passes through this strait.
When a conflict occurs, the route is disrupted, oil supplies become limited, and prices soar.
Malaysia, which has almost 50% of its oil passing through this route, is no exception to the effects of rising global prices.
Imports Exceed Exports
In addition, although Malaysia is an oil producer, the country actually imports more crude oil and petroleum products than it exports.
This means that we are not completely free from global price fluctuations.
For example, although the country's production is intended for domestic consumption and export, rising world prices continue to put pressure on the local market.
Government Subsidies to Protect the People
In facing this situation, the Malaysian government has taken proactive steps to protect the people from the burden of high prices.
Through the BUDI MADANI RON95 (BUDI95) and BUDI Diesel programs, the people and the majority of traders do not have to pay the actual market price.
Government subsidies have increased drastically from around RM700 million to RM3.2 billion in less than a week, showing how serious the government's efforts are to maintain the well-being of the people despite the world's uncertainty.
This situation shows that although Malaysia is an oil producer, we are still tied to the global economy and prices.
Subsidies not only help the people cope with the rising cost of living, but also ensure that the small and medium business sector can continue to operate without additional pressure.
Therefore, the rising price of petrol is not simply because we are losing our own oil sources but because of a combination of global factors and the reality of oil imports.
In the face of an uncertain world, protecting the well-being of the people through subsidies is a government priority, ensuring that the people are not overburdened and the country's economy remains stable.
