Malaysia's domestic trade and consumer affairs minister Datuk Shahrir Samad has confirmed that the state-run oil company has been funding welfare and education programmes across the country.

Over recent months, a number of objections have been raised to the price increases introduced by Petronas, with many arguing that the company is not doing enough to shield people from soaring wholesale costs.

However, speaking at his first monthly gathering with his ministry since he assumed his new role, Mr Shahrir stated: "Petronas is helping out, let me assure you of that."

He explained that, while the company did not subsidise petrol at the pump, a system is in place whereby it gives the Malaysian government part of its revenue to be placed into a consolidated fund.

"It is money from the fund that the Government is using to subsidise petrol, agriculture, education, welfare, and now food. We give all these aids with the help of Petronas," the minister added.

Earlier this week, Petronas confirmed that its plans to build a 100,000-barrel refinery in Port Sudan had been deferred due to rising costs.