Annuar Musa says the recommendation on price reductions is expected to be implemented soon.

Traders are growing increasingly worried that demand for the commodity will take a hit from a possible recession caused by a sharp hike in interest rates aimed at reining in inflation.

Fuel use has rebounded from the 2020 pandemic-induced slump but high prices have eaten into growth projections for 2022 and fed into expectations for slower growth in 2023.

Both Brent and West Texas Intermediate gained more than 7% to climb above US$110 a barrel.

Brent oil futures finished under US$100 a barrel for the first time in nearly three weeks, reflecting worries about the prospects for the world's second largest economy as it confronts the latest Covid-19 surge.

Tengku Zafrul Aziz says subsidies for petrol, diesel and liquefied petroleum gas increased from RM200 million for January 2021 to more than RM2 billion for January 2022.

The US has called on oil producers worldwide to increase production if they can.

While remaining below Monday's peak of US$139.13 a barrel, the main international oil contract, Brent, jumped 4.7% to close at US$128.06.

While oil revenue increases, the cost of subsidies will also go up as the government is currently subsidising RON95 and diesel.

Analysts are warning of inflationary pressure on the global economy from US$100 oil, especially for Asia, which imports most of its energy needs.

Markets were jittery a day after Russia's move to send troops into parts of Ukraine, but the safe-haven US dollar was slightly lower against major currencies while gold was also in the red.

Oil prices in recent weeks have surged above US$80 a barrel, the highest point in years, as economies reopen following the pandemic shutdowns and amid shipping bottlenecks.