KUALA LUMPUR: Petronas Dagangan Bhd (PDB) is in discussions with the Ministry of Finance (MoF) regarding the spike in the government’s fuel subsidy bill this year, as a result of high global oil prices, says PDB managing director and CEO Azrul Osman Rani.
According to a recent statement by Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz, spending on fuel subsidies may reach RM28bil this year if global oil prices continue to trend above US$100 (RM435.65) per barrel, compared with RM11bil on the fuel subsidy bill in 2021.
“We are in close discussion and communication with the Finance Ministry.
“We understand the current predicament with the high global oil prices impacting the country as well as every other nation,” Azrul told reporters during an online media briefing after the group’s AGM.
“Just to give a better feel, if you look at Thailand today, we’re looking at RON 95 equivalent of about RM5 per litre.
“In Singapore, it is close to RM10 per litre. So definitely, there will be a deepening concern with regards to the ballooning subsidy budget that the government would have to shoulder,” he added.
Azrul said it is understood that the government is also looking at various initiatives, including potential targetted subsidies for the B40 income group and perhaps also the M40 group.
“We will support and continue to work with the government as well as the overall oil and gas industry operating in Malaysia. I think there’s still several discussion points that we need to finalise and iron out.
“We’ll be working closely with them to ensure a smooth and sustainable model that the country can adopt,” he said.
Energise by Petronas EV fast chargers.
Meanwhile, PDB is partnering with Mercedes-Benz Malaysia Sdn Bhd and EV Connection Sdn Bhd to install its own branded fast electric vehicle (EV) charger, Energise by Petronas, at five Petronas stations along major highways this year.
Azrul said the group would roll out more EV chargers “as the market grows in tandem with demand.”
“We are also looking at EVs in a pragmatic way. We do understand that this is a new emerging market. It’s not a question of if, but rather a question of when.
“This is one of those areas where you do not want to be way too ahead of the curve as technology is fast evolving, and we want to move in tandem with the growth of the market,” he said.
