The government may be set to spend more on fuel subsidies due to the rise in global oil prices, but these subsidies will be maintained so as to protect the rakyat from the impact of a sharp rise in inflation, said national budget office director Datuk Johan Mahmood Merican.
He said this commitment would be continued, taking into account the fact that the country is still in the early stages of recovery from the impact brought about by the Covid-19 pandemic, Bernama reports. “The government is maintaining the current subsidy policy to protect the people from price increases and disruptions to the food supply chain, even though the cost for the subsidies has increased considerably,” he explained.
Speaking on a Bernama TV programme earlier this week, he said that Malaysians would still be able to enjoy RON 95 petrol at a capped price of RM2.05 per litre, which is one of the lowest prices around compared to oil-producing countries such as Saudi Arabia as well as neighbouring countries. Without the subsidy, the fuel would already be touching RM4 per litre. Presently, the price of RON 97 is RM4 per litre.
While rising oil prices are generally positive for a net oil and gas exporting country like Malaysia, the country will pay more in fuel subsidies than whatever it gains from revenue when prices climb.
Last week, it was reported that the government is on track to spend RM28 billion in fuel subsidies for petrol, diesel and liquefied petroleum gas (LPG) this year if the price of crude oil continues to remain above US$100 per barrel. This is five times higher than the RM5.3 billion allocated under Budget 2022.
Earlier, finance minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz had said that the government was looking into the possibility of the current fuel subsidy mechanism being reviewed in favour of a targeted approach for those in need. Presently, the same subsidised prices are enjoyed by everyone, regardless of income, and the high-income groups stand to benefit more from the subsidies based on their higher consumption levels compared to those earning lower incomes, he had said.
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We don’t expect anything less…
This Datuk Johan is emphatatic with the poor rakyat.
Can u imagine allowing rakyat to pay high petrol prices,with depleted EPF savings due to another round of withdrawals,while dishing out billions of MRT 3 contracts?
Just doesnt add up.
Trims Kaseh! #BetterNation #Penyayang
Yes, this is a good move. However, the moment Government decided 1.5K with effective 1st May, I trust the Inflation will be much higher than the impact could bring from fuel price!
WOW!!
Bravo NBA ! Economics 101!
This will be much appreciated by the broad spectrum of of the Malaysian population.
This will stop unscrupulous businesses from surreptitiously and indiscriminately raising their prices on anything and everything!
Good job NBA.
Charge more for ron97 la.. rich people pump 97, then use the income generated from ron97, to help subsidize ron95 fuel
*Include also v power racing, ron100, etc etc
*Since Singaporean cars start to come into Malaysia, best time to implement this. Charge them higher cause they’re rich, come here say everything cheap
How about Ron97 petrol?? Incompetent gahmen as usual , pffttt..
Bests selling point to win cmg GE, after win will increase with dam care n lousy excuses
Copy paste: “Agreed! So angry! We will vote for that party who promised Rm1.50 petrol… oh wait.. we did, and they won. But…”
Great effort but don’t believe their intention “subsidies will be maintained so as to protect the rakyat from the impact of a sharp rise in inflation”.
They require to do more for this impact of inflation donkey years ago.
Just wait see which party politician pick this action as part of their campaign.
Aiyo inflation is already here la. Just take a look at the grocery prices at the supermarkets.
Agreed! So angry! We will vote for that party who promised Rm1.50 petrol… oh wait.. we did, and they won. But…
Yes we will continue the subsidies but from RM1.50 to RM0.50 only. Still we will continue.
so where all the money from the inflated car prices go to? meteor roads in sarawak?
Continuation of petrol and diesel subsidies will weaken the RM further causing prices of other goods, not just petrol snd diesel, to be more expensive.
Best to strengthen the RM and abolish all subsidies.
Can you smell that? Sniff sniff… PRU is coming!
At least they give us, not just make empty promises but never give until today…