Government still paying millions in fuel subsidies

Government still paying millions in fuel subsidies

According to a report by The Malay Mail, the Malaysian government is still paying millions of ringgit every month for fuel subsidies. Tan Sri Mohd Irwan Serigar Abdullah, secretary-general of the Treasury, revealed this during a post-Budget 2018 dialogue.

“Although we went through (a change in) fuel price mechanism, the government still subsidises (fuel prices) sometimes. In certain periods if it goes up, we subsidise a bit,” Irwan said.

“We still subsidise a few hundred million (ringgit) a month, but I don’t know what will happen in the future. Formerly, we subsidised RM22 billion, after rationalising, around hundreds of million,” he added.

Prior to the complete removal of fuel subsidies in 2014 (beginning with RON 97), prime minister Datuk Seri Najib Tun Razak had stated the government spent RM29 billion to subsidise RON95, RON97 and diesel fuel in 2013.

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Comments

  • pojie on Oct 31, 2017 at 3:02 pm

    I thought the fuel subsidies were completely removed already?

    Like or Dislike: Thumb up 38 Thumb down 0
    • Rajan on Nov 01, 2017 at 9:08 am

      This is like a yoyo Government. Government told us they have to raise GST cause fuel subsidies have been removed. So, we trusted what they said.

      now they tell us, it is still being subsidised. So, why have GST and also raise prices like TNB etc? TNB also told us, electric have to go up cause no more fuel subsidy.

      So….who is telling the truth?

      Well-loved. Like or Dislike: Thumb up 54 Thumb down 0
  • Sama L00 on Oct 31, 2017 at 3:03 pm

    Government subsidize us or we subsidize the government? Better take their statement with barrels of salt.

    Well-loved. Like or Dislike: Thumb up 58 Thumb down 1
  • Mamak on Oct 31, 2017 at 3:07 pm

    “…the government still subsidises (fuel prices) sometimes. In certain periods if it goes up, we subsidise a bit,” Irwan said.

    Then if it goes down (which we now know is low oil prices), the rakyat subsidises the government!
    Isn’t the government elected by the rakyat?

    Like or Dislike: Thumb up 41 Thumb down 1
  • Lullasingh88 on Oct 31, 2017 at 3:08 pm

    Rubbish talking they still thinking that they speaking with kampong pple so as soon as they said millions of dollars subsidy then pple clapping.liers all.if true show us proof

    Like or Dislike: Thumb up 38 Thumb down 1
  • Fuel subsidies more benefit the Rich drive fuel guzzling SUVs, performance & sportscars

    Like or Dislike: Thumb up 15 Thumb down 1
  • Leafable on Oct 31, 2017 at 3:18 pm

    Dah… Why do you think its still RM2.20 per litre? Global market price is at least RM4 per litre.

    Like or Dislike: Thumb up 5 Thumb down 75
    • Nicholas on Nov 11, 2017 at 3:05 am

      You seem lack knowledge in business and economics so let me enlighten you.

      1) Our cost is lower than other countries because of lower rent, lower labour cost, lower operating cost, and lower ringgit value (our cost is in ringgit, their cost is in USD, SGD, AUD, EURO)

      2) Other countries are not oil producing countries so to make up for that they need to tax people on the petrol price.

      3) The profit margin for the gas companies (other than petronas) and petrol station is actually very low because of government restrictions. (8cent and 12cent respectively)

      So our petrol price is lower not because of subsidies, it is because we produce our own petrol, our cost is lower, and gas companies restricted from getting higher profit margin.

      Like or Dislike: Thumb up 2 Thumb down 0
  • Lullasingh88 on Oct 31, 2017 at 3:20 pm

    Does any1 think that sensible n wise man can issue this type of statement.if yes sure provide PROOF

    Like or Dislike: Thumb up 16 Thumb down 0
  • Samsadol on Oct 31, 2017 at 3:31 pm

    ……..and yet Malaysian people pay billion in tax

    Well-loved. Like or Dislike: Thumb up 54 Thumb down 0
  • pondan4 on Oct 31, 2017 at 3:38 pm

    why why… all this crap and u can claim anything since it’s no transparency.

    where is the promised fuel price formula that’s way way long over due.

    Like or Dislike: Thumb up 34 Thumb down 0
  • Gov subsidies while we still paying high prices when the petrol price is low. Where does the money goes?

    Like or Dislike: Thumb up 26 Thumb down 0
  • Stefan on Oct 31, 2017 at 3:58 pm

    Where all these 22bilion savings and 44billion gst goes to?

    Well-loved. Like or Dislike: Thumb up 55 Thumb down 1
  • Rajan on Oct 31, 2017 at 4:10 pm

    According to world prices of oil and processed oil, Ron 95 should not be more than RM1.50 per litre.

    It looks like the rakyat is subsidising the Government and not the other way round by paying RM2.20 pe rlitre.

    Like or Dislike: Thumb up 43 Thumb down 3
  • Tell us the revenue of exported oil as compared to your subsidies.

    Like or Dislike: Thumb up 19 Thumb down 0
  • ayoyo on Oct 31, 2017 at 4:29 pm

    tax payer is paying more!!!

    Like or Dislike: Thumb up 13 Thumb down 0
  • burong on Oct 31, 2017 at 4:32 pm

    lies every day. so this is to make us shiok?

    just said no subsidy anymore n follow world price, now say subsidy again.

    Like or Dislike: Thumb up 19 Thumb down 0
  • Vincent on Oct 31, 2017 at 4:50 pm

    Yaya… our bodoh government always loss!

    Harga minyak nak… kita bankrupt!
    Harga Minyak turun…kita bankrupt!

    Rakyat bayar minyak murah, government subsidy banyak!
    Rakyat bayar minyak mahal, government subsidy banyak!

    Like or Dislike: Thumb up 39 Thumb down 0
  • Archangel on Oct 31, 2017 at 4:52 pm

    Which information is correct? Subsidies or no subsidies?
    Previously said no subsidies and now subsidies. Stop playing joke drama and straight to the point please. We had enough with flip flop announcement.

    Like or Dislike: Thumb up 17 Thumb down 0
  • ApaCam on Oct 31, 2017 at 5:46 pm

    Really? But you earn back when fuel price drop low.

    Like or Dislike: Thumb up 12 Thumb down 1
  • Kancil Hybrid on Oct 31, 2017 at 5:54 pm

    Bila naik kenapa dipersalahkan kerajaan?

    Like or Dislike: Thumb up 1 Thumb down 43
    • We choose them from the deepest of our heart,
      But the statement came from them made us feel hurt.

      Like or Dislike: Thumb up 0 Thumb down 12
  • Hearing the hundred millions figures makes us somewhat agree with subsidy abolishment. But the problem is, if the money not going into petrol subsidy, we did not know where it goes. Mega projects still borrow from China, etc. Thats why better spend into petrol subsidy. At least we know we spent it ourself instead it vanish in someones big pocket the wrong way

    Like or Dislike: Thumb up 36 Thumb down 0
  • Rubbish… forever sub to the ppl then per claim by the govt. Senseless

    Like or Dislike: Thumb up 11 Thumb down 0
  • orang biasa on Oct 31, 2017 at 6:31 pm

    Semua dio orang cakap. Dulu mula-mula kata subsidy boleh beban negara, so kita government akan discontinue subsidy, tapi duit yang subsidy tu akan jadi fund lain. Tapi sekarang cakap kita ada subsidy sikit. Ini case cepat announced sebab election akan datang, tapi untuk publish minyak formula kena tunggu lama. So semua orang cakap… cakap Manusia pun dia orang, cakap hantu pun dia orang.

    Like or Dislike: Thumb up 35 Thumb down 1
  • sick&tired on Oct 31, 2017 at 6:52 pm

    so now they collect RM39 billion in GST (for 2016, should be higher for 2017) and save RM22 billion by removing oil subsidies. Where does the savings go to?

    Like or Dislike: Thumb up 36 Thumb down 0
  • Andrekua on Oct 31, 2017 at 9:37 pm

    I also can say I subsidize gov with the current price. There’s no revealing how the calculation works. Lately Heng Yuan (formerly shell) and PetronM share price rose through the ceiling, reporting hundreds of millions in profit for just 3 months. I wonder how these refineries are earning tens/hundreds of millions in just 3 months. Imagine how much they made each year. If their corporate tax is 26%, then government is actually making money on petrol, not subsidize.

    Like or Dislike: Thumb up 18 Thumb down 0
  • citizenjohn on Oct 31, 2017 at 10:07 pm

    While subsidi across the board is no more, there is still gov subsidi for RON95 & diesel & NGV

    Like or Dislike: Thumb up 8 Thumb down 6
  • drMpower on Nov 01, 2017 at 5:31 am

    Irwan
    Now its time to reveal all the mechanism including the pricing
    The problem is you people think you are smart but even a bloody pig know u people are not

    Afterall you people have done, people no longer believe automatic to what you say. You are facing trust deficit you know what i mean?

    If people got choice, irwan you wont be at where you are now

    Like or Dislike: Thumb up 7 Thumb down 0
    • st3wp1d on Nov 01, 2017 at 2:51 pm

      ..and also not forget how much those oil industries/players pay to gov as tax..this must also take into account.

      Like or Dislike: Thumb up 2 Thumb down 0
  • Is this the sign that this week oil price will be rise higher that before?
    I hope they can cut some of the menteri salary to help government. Haha

    Like or Dislike: Thumb up 5 Thumb down 0
  • abah kau on Nov 01, 2017 at 9:35 am

    where got subsidies. lagi ada tax ada lah

    Like or Dislike: Thumb up 6 Thumb down 0
  • Rakyat Biasa on Nov 01, 2017 at 6:20 pm

    Tomorrow up 4sen… my neighborhood Petron close for today business. After up then reopen… Hahahaha…. smart move to survive. 1L extra 4sen…..

    Like or Dislike: Thumb up 2 Thumb down 0
 

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