Malaysia may spend up to 40 billion ringgit ($9.8 billion) on fuel subsidies this year if energy prices remain elevated, more than double its initial budget allocation, Prime Minister Anwar Ibrahim said, according to Reuters.

Malaysia had set aside about 15 billion ringgit for fuel subsidies in its budget for 2026.

In a written parliamentary reply, Anwar said the government had spent about 800 million ringgit in each of the first two months of the year on subsidies for diesel and the RON95 transport fuel, before the figure jumped to about 5 billion ringgit in March and April after the outbreak of the war in Iran.

“The government’s priority is to ensure that the people continue to be protected if this crisis continues, especially those most affected by the cost of living pressures and rising global prices,” Anwar, who is also the finance minister, said.