Rafizi Ramli refutes claim government may lower price of RON95, diesel – doing so will affect other initiatives

Rafizi Ramli refutes claim government may lower price of RON95, diesel – doing so will affect other initiatives

Economy minister Rafizi Ramli has said there have been no discussions on fuel prices at the government level, reports Malay Mail and NST. He added that any adjustments on fuel prices would be under the purview of finance ministry as the matter involved subsidies.

Rafizi was commenting on a recent report by MIDF (Malaysian Industrial Development Finance) Research anticipating that the government would reduce the price of fuels, particularly RON95 and diesel. The research said a reduction of 10 sen per litre (from RM2.05 per litre for RON 95 and RM2.15 per litre for Euro 5 B10 diesel) would ease inflation and improve the government’s coffers as the Brent crude oil price averaged below the government’s estimates.

“I have not heard about it and there are no discussions regarding any proposal to lower the price of RON95 and diesel. Until now, which is seven months of various economic-related discussions in the government, there has never been a single mention of a proposed lowering of fuel prices. Perhaps MIDF Research can explain where this information was obtained,” said Rafizi. “In fact, the price of crude oil has increased from about mid-USD70s to about USD82 per barrel today,” he added.

Rafizi Ramli refutes claim government may lower price of RON95, diesel – doing so will affect other initiatives

In a separate report by FMT today, Rafizi said reducing petrol prices will jeopardise other initiatives and programmes implemented by the government for the people’s benefit. At a Jelajah Madani event in Sungai Tua yesterday, Rafizi said, “people ask why we don’t lower petrol prices. Firstly, our national debt is RM1.5 trillion. We have huge debts, so the government must make choices.”

He went on to say that for every litre of RON95 petrol, the government subsidises RM1, or about two-thirds of the cost, which amounts to RM25 billion. Subsidies for RON95, diesel and electricity surpassed RM80 billion last year, while the government’s source of income was roughly RM300 billion.

“So, if the government has to pay RM80 billion in petrol subsidies, about RM30 billion as interest on loans, and fund workers’ salaries in the hundreds of billions, in the end, we run out of money,” Rafizi explained, adding that other important matters like teachers’ salaries, housing projects for the poor and resolving water woes could not be resolved as a result.

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard's strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • newme on Jul 31, 2023 at 4:38 pm

    If last time announce to reduce but end up never reduce. This time announce no reduce, I think will end up increase kot.

    Like or Dislike: Thumb up 18 Thumb down 16
    • This refers to on Aug 01, 2023 at 2:27 pm

      MIDF Research’s speculative report but MIDF is a private sector company, not a government agency & not a political party.
      https://paultan.org/2023/07/25/government-likely-to-lower-ron95-and-diesel-prices-to-ease-cost-of-living-in-malaysia-says-midf-research/

      Like or Dislike: Thumb up 3 Thumb down 3
    • RM1.50/L petrol mana? on Aug 01, 2023 at 3:41 pm

      The guys whose purported formula promises to give petrol RM1.50/L. Janji tu dah ke mana piji woi?

      Like or Dislike: Thumb up 12 Thumb down 8
      • Ayahanda on Aug 01, 2023 at 3:51 pm

        Sabarlah nak.. Kau belum dapat ‘A’ utk semua matapelajaran…

        Like or Dislike: Thumb up 6 Thumb down 8
        • Rakyat Malaysia on Aug 02, 2023 at 8:42 am

          Cis ayahanda Nuar! Dah bagi peha GE15 lagi nak sebijik ayam tapi janji blun bagi satu pon! Dah muak! Rkyat dah nak tukar ayah jela!

          Like or Dislike: Thumb up 7 Thumb down 4
          • Ayahanda on Aug 02, 2023 at 9:20 am

            Budak ni mesti dah keliru 2×5.. Tak tahu ke nama sebenar ayah kandung sendiri?.. Budak ni tak ingat ke berapa ketul ayam dia dah lanyak setiap kali ayah belikan KFC?.. Bila ayah bagi nasihat belajar bersungguh2 sampai dpt semua ‘A’, nak mintak tukarkan ayah pulak.. Memang anak derhaka!!

            Like or Dislike: Thumb up 2 Thumb down 4
          • Rakyat Malaysia on Aug 03, 2023 at 5:14 pm

            Time to UBAH to ABAH!

            Like or Dislike: Thumb up 2 Thumb down 2
          • Ayahanda on Aug 03, 2023 at 11:56 pm

            Time to belajar dengan lebih tekun utk dpt semua ‘A’.. Jangan mintak tukar ayah kerana tak suka belajar.. Itu kerja anak derhaka!

            Like or Dislike: Thumb up 0 Thumb down 2
  • Siew Pak Choy on Jul 31, 2023 at 4:45 pm

    Hello Mr. Formula, why are the rich not paying taxes for their EVs? The B40 pays taxes for their Proton and Perodua, while the M40 kena slaps duties and taxes for their Toyotas and Hondas? it is a wonder why some car companies already closed shop here

    Like or Dislike: Thumb up 16 Thumb down 13
    • chill la pro im T1 on Aug 01, 2023 at 8:01 am

      Chill la bro, gov giving incentive to T1 u bising what,i got my taycan turbo last year, i saving 10k roadtax per till 2026, thanks goverment

      Like or Dislike: Thumb up 6 Thumb down 5
    • More EVs will reduce government spending on petrol subsidies and in long run will saved billions.
      Government should also allow more cheap EVs (example BYD Seagull-rm50k) to be sold here and forget about the restrictive RM100k protectionism.

      Like or Dislike: Thumb up 7 Thumb down 8
  • Janji dicapati on Jul 31, 2023 at 4:48 pm

    Refer my name

    Like or Dislike: Thumb up 17 Thumb down 13
    • hungry customer on Aug 01, 2023 at 9:54 am

      80+30 bil blh beli banyak capati tapi sekarang saya nak order capati satu!

      Like or Dislike: Thumb up 6 Thumb down 5
      • Angry Voters on Aug 01, 2023 at 3:43 pm

        Hungry & angry voters will make sure PH gomen not last thru August.

        Like or Dislike: Thumb up 6 Thumb down 5
        • You planning on Aug 01, 2023 at 4:08 pm

          military coup like in the north?

          Like or Dislike: Thumb up 1 Thumb down 1
          • angry hungry voters had on Aug 01, 2023 at 5:44 pm

            also appeared last November.

            Like or Dislike: Thumb up 0 Thumb down 0
        • Angry voters, i still have my screenshot of your comment saying you want a military coup in this country. Dont make me report to PDRM

          Like or Dislike: Thumb up 2 Thumb down 0
  • Nurul Izzah on Jul 31, 2023 at 4:48 pm

    Anwar menang, rakyat senang

    Like or Dislike: Thumb up 13 Thumb down 13
    • Rakyat Malaysia on Aug 01, 2023 at 3:47 pm

      Anwar gembira, rakyat sengsara.
      Anwar di Sg Buloh, rakyat sorak kali sepuloh.
      Janji dimana woi, siapa yang sokong penyamun hoi.

      Like or Dislike: Thumb up 13 Thumb down 10
  • DAP Korup on Jul 31, 2023 at 4:49 pm

    Talk 1st, lie later

    Like or Dislike: Thumb up 22 Thumb down 19
  • B40 dalam kesusahan on Jul 31, 2023 at 4:51 pm

    No cheaper petrol? Boohoo…kita undi walaun

    Like or Dislike: Thumb up 11 Thumb down 9
    • Nak lebih murah on Aug 01, 2023 at 10:05 am

      undilah arab saudi

      https://paultan.org/2006/05/01/saudi-king-slashes-petrol-prices/

      Like or Dislike: Thumb up 7 Thumb down 7
  • Rafizi sembang kencang on Jul 31, 2023 at 4:52 pm

    Sorry to all Malaysians, the government can’t afford to fulfil the promises. We forgot the right formula to reduce fuel prices, abolish tolls, etc.

    Like or Dislike: Thumb up 14 Thumb down 12
  • Proton oh Proton on Jul 31, 2023 at 6:04 pm

    I believe this is what Bossku mentioned before… but than you claim that you have super formula to resolve it.

    Like or Dislike: Thumb up 15 Thumb down 11
    • Bosozoku's super formula was on Aug 01, 2023 at 3:16 pm

      to have super loads of $$$ into his account.

      Like or Dislike: Thumb up 2 Thumb down 2
  • Cendawan on Jul 31, 2023 at 6:09 pm

    Jadi sebelum tu hang buka mulut kata menang pilihanraya hari ni, harga minyak turun 50 sen besok tu tipu la

    Like or Dislike: Thumb up 16 Thumb down 14
  • Politikus on Jul 31, 2023 at 6:33 pm

    Semua politikus sama je. Kuat wayang. Janji dicapati. Cukurlah Malaysia ku masih aman dan damai

    Like or Dislike: Thumb up 11 Thumb down 10
  • dodgeviper88 on Jul 31, 2023 at 7:27 pm

    Dulu kangkung naik, sekarang dah turun

    Like or Dislike: Thumb up 10 Thumb down 8
  • Phuddi sung lee on Jul 31, 2023 at 9:46 pm

    After winning GE, a typical politician statement as expected,

    Like or Dislike: Thumb up 11 Thumb down 9
  • Beware..the greenies..they r coming on Aug 01, 2023 at 6:11 am

    Lets see,after state elections…
    If greenies continue to march into germen perpaduan territory,u can bet fuel prices wont change until GE16.
    This fuel subsidy thing can be weaponised to garner waning support.
    If businesses pay RM3.20/litre for fuel..tomorrow..every damn egg,roti chanai,teh tarik,bas sekolah tambang,express bus,lazada,tenggiri,Dreamland mattress will cost more.
    Fuel subsidy is “like” dadah..it is very addictive.
    I dont give a damn what politicians say.We will cross the bridge when time comes.

    Like or Dislike: Thumb up 8 Thumb down 7
  • formula taik kelaut. Menteri badut

    Like or Dislike: Thumb up 10 Thumb down 8
  • Ben Yap on Aug 01, 2023 at 9:41 am

    fuel subsidy is not going to lower food prices. once sellers increase, they never decrease.

    Like or Dislike: Thumb up 4 Thumb down 3
    • Rakyat Malaysia on Aug 01, 2023 at 3:50 pm

      But reducing fuel subsidy will increase food prices and once go up will never come down. So the key here is not what they said they won’t reduce it but they are awfully silent about never going to increase it. That is what worries people.

      Like or Dislike: Thumb up 5 Thumb down 4
      • Food prices have on Aug 01, 2023 at 4:57 pm

        already gone up when fuel subsidies are still in place. That is already caused by the market forces of demand & supply of food.

        Like or Dislike: Thumb up 1 Thumb down 1
    • hazri on Aug 01, 2023 at 5:43 pm

      when paklah increase ron95 to rm2.70 per litre back then while fuel price globally not so hike, all thing price increase. since then, no more price decrease.

      Like or Dislike: Thumb up 2 Thumb down 2
    • WhoSaid on Aug 02, 2023 at 3:33 pm

      Who said cannot reduce. If people boicott greedy seller and publish their shop name online, overnight business collapse

      Like or Dislike: Thumb up 0 Thumb down 0
  • Lorrrr where is the formula? Ok I want to go eat capati lah.

    Like or Dislike: Thumb up 8 Thumb down 6
  • alibaba on Aug 01, 2023 at 11:21 am

    just took off AP, lower the car price then remove subsidy for fuel. please learn from neighbors if you cant decide anything right.

    Like or Dislike: Thumb up 5 Thumb down 4
  • Laugh on Aug 02, 2023 at 9:03 am

    All these hoohaa for what…

    The reason for fuel subsidies in the first place was because the gomen opt to make more income from vehicle taxes rather than fuel because of low fuel prices at the time.

    Now fuel price went up, change lah…
    Remove all fuel subsidies and taxes from vehicles.

    Now… vehicle taxes same for B40 and M40 but T20 get to avoid by buying and using EVs.
    Fuel pulak tak mau subsidi.

    Apa ni?

    Like or Dislike: Thumb up 2 Thumb down 1
 

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