The government is considering whether to “slightly reduce the quota” of subsidised fuel for Malaysians to manage demand, while ensuring that lower-income individuals are protected in the global energy crisis, Liew said at an event today.

Another measure under review is to shift diesel usage for Borneo states to a similar subsidised allocation mechanism, he said.

Policymakers in the Southeast Asian country are preparing for a more targeted approach in subsidies as global energy costs remain elevated from the war in Iran.

Over the weekend, Prime Minister Anwar Ibrahim said the government was reviewing a rationalisation of fuel subsidies for higher-income earners.

While Liew does not rule out the possibility of a general election this year, he said he does not “see political factors coming into this”.

The move comes as Malaysia faces a sharp increase in fuel subsidy spending.

The country was expected to spend about RM7 billion (US$1.8 billion) on fuel subsidies in April, about 10 times more than before the conflict, highlighting a mounting fiscal strain.

Liew said ensuring “consistent supply for as long as possible” was a bigger concern for him at the moment than fiscal issues.

The government reduced in April the subsidised fuel allocation for its most popular fuel from 300 litres to 200 litres per citizen.

The subsidised price has remained unchanged at RM1.99 (US$0.50) per litre since the Iran war started on Feb 28.

Diesel in Sabah and Sarawak has been capped at RM2.15 per litre.