KAJANG, July 20 -- Prime Minister Datuk Seri Anwar Ibrahim has defended the government's fuel pricing policy, saying Malaysia's ability to keep petrol prices at RM1.90 per litre comes despite the country still importing nearly half of petroleum requirements.

Responding to criticism saying he had failed to reduce fuel prices, Anwar said the government had to consider the long-term financial burden of subsidies and existing debts inherited from previous administrations.

"Some have claimed that the price should be reduced by as much as 50 sen. Today, even in Saudi Arabia, the price is around RM2.40 to RM2.50 per litre, despite the fact that it is one of the world's largest petroleum producers with a very large production capacity.

"Malays...