The rationalisation of fuel subsidies in Malaysia has begun with the removal of the blanket subsidy for diesel, with the retail price of B10 and B20 diesel in the peninsula increased to RM3.35 per litre as of today, June 10. This is a RM1.20, or 56%, jump from the previous RM2.15 per litre price for the fuel, which has been capped since 2021 by the government.
It’s a move that prime minister Datuk Seri Anwar Ibrahim says is painful but necessary to save the country, but the rationalisation programme will of course not stop there, as the government has already made it clear that it has plans to do the same for RON 95 petrol, although the timeframe as to when that implementation will happen hasn’t yet been offered.
The sooner this happens, the less of a price increase is needed, if the aim is to meet the targeted savings set for this year in Budget 2024, says Maybank Investment Bank. In a research note, its chief economist Suhaimi Ilias said that a simulation reveals what is needed to attain the target, as Dagang News reports.
He said that in Budget 2024, the government said it was targeting savings of RM11.5 billion on its subsidy expenditure for this year. So far, it has achieved a savings of RM7.4 billion, including RM4 billion from the adjustments made in electricity subsidies and RM1.2 billion from the elimination of chicken subsidies.
He added that a further reduction of RM2.2 billion is projected from the targeted subsidy of diesel, which is a pro-rated amount based on the RM4 billion in savings that can be achieved from fuel rationalisation in a full year.
According to the investment bank, an increase of 10 sen per litre for RON 95 petrol can save the government RM2.5 billion in subsidies for a full year, assuming the increase is offset by monthly cash assistance to eligible recipients under targeted subsidies such as that for diesel.
So, with that, the simulation made by by the investment bank indicates that the price of RON 95 petrol would need to be increased by 32 sen, or 15.6%, to RM2.37 per litre starting this July 1 to achieve the RM4.1 billion savings needed to meet the RM11.5 billion target.
Suhaimi said that should the government act slower, implementing it in the fourth quarter, the price of RON 95 petrol will have to be raised higher to achieve the savings target in 2024, given the shorter timeframe. He said that in such a scenario, the price of the fuel will have to be increased by 65 sen, or 31.7%, to RM2.70 per litre if it began on October 1, 2024.
However, Suhaimi pointed out that any move to introduce targeted subsidies for RON 95 petrol is ultimately a “political decision,” and that the government has the final say on the actual quantum and timing of the price adjustment.
He added that the government could delay the implementation of the subsidy rationalisation programme involving RON 95 this year and still make its targeted savings for the year. This was because an additional dividend from Petronas could cover any shortfall in the RM4.1 billion required to achieve the total reduction target defined in the 2024 Budget.
Looking to sell your car? Sell it with Carro.
hope it can have capped inflation difference to Global Oil Price.
lucky not RM3.35/liter macam Diesel, despite cheaper than ASEAN.
Analist just do raw maths
When it happens to petrol
Probably like diesel
>100K individual/couple
Luxury models won’t get
Sell your flashy ICE now
lol, previous gov use comparison in ASEAN, macai said thats because of currency. so not valid. suddenly now all justified.
lol
what people not ok is corruptions and leakages all talk only where all the big snakes still not caught ..all wayang only…tangkap ikan bilis saja……so how???????????
Brunei don’t have 1.6mil govt staffs
Malaysia budget, 22% was from loans
34% pay to Salary and Pensions
13% pay to Subsidies
Got other Solution?
This is necessary so that governments will have more money to give to their family members projects that are worth billions.
When they prosper, we prosper too. This is so true. We need to make them rich and control this country so that we can be rich too.
I hope we as supporters of this government can understand this and keep on supporting.
So true brother
The important thing is how they will develop the country and economy from these savings.
Plenty of these bros & sis with benefits in KKB.
saudara!!
kita ada formula!!
kita ada formula
kita yakin
dan saya ulangi malam ini
sesungguhnya
dianatara sebab mengapa kita mau ambil alih kerajaan
KERANA HARI INI KITA AMBIL ALIH KERAJAAN
ESOK!! ESOK!! ESOK!!EEESSSOOOKKKK!!!!
HARGA MINYAK TETAP TURUN!!…
5 JUTA RAKYAT MALAYSIA KENA KELENTONG DGN ALJUBOK
Anwar menang minyak naik
Starting next month there will be less and less unneeded traffic on the road.
Peronda-peronda that drive around for nothing will stay home more often.
Yeah, this what I’m hoping for. Only silver lining with subsidy rationalization . Less unnecessary travel leading to better traffic condition
Bro be like reducing EV (expensive car) roadtax, and reducing subsidies for ice (current older cars) to make it harder for older car users.
And just raise the price la, set a ceiling price. And let petrol kiosk owners decide what price they wanna sell at.
Will the 100k minister allow more EVs into the country and get rid of the 100k limit? Otherwise those who can afford to pay for petrol can afford to buy EVs but those who really need an EV have to earn enough to buy an EV.
Also road tax based on engine power is a good idea too. Lagi power lagi bayar.
Yeah, if Gov really need the money, they will go all the way out to catch those officials that work together with fuel smugglers.
Kesian those mat rempit and superman, the cost of enjoyment rises, previously can ‘fly’ for 10km, now with the same petrol capacity, flying distance shorten by 16%. Does that mean the road is 16% safer now? i hope so…
Gaji pekerja swasta bila boleh naik 13.17%?
Bila kos operasi naik, gaji akan direndahkan. Simple ekonomi 101. Jawapanya, gaji akan turun atau kekal sama. Tak akan naik
Proto X50 premium
The inevitable is here.
Saving country
1. Bring back to USD 1 to MYR 3 in exchange rate
2. Increase productivity and output
3. Increase salary and reducing cost of living
4. Reduce Road Tax and Car Tax price
5. Reduce corruptions by 50% min.
I don’t mind to pay high diesel and petrol on par the global market Rate.
Kepala hotak kau! U think your father’s money? Did you m*therfarkers study the impact?
The faster the better. Let’s get everyone extremely angry and just for fun hold an election. Let’s see what happens.
Elections is another 3 years, msians will mudah lupa unless Bersih, PKR, DAP, organise another mass protest demo just before GE… oh wai
i envy Brunei and their dirt-cheap petrol and electricity prices
but brunei cukai tinggi.
Brunei mana ada cukai? perghh bodoh kau ni. Brunei negara tax free sebab sultan mereka pandai gali minyak dengan kos rendah. Di Malaysia, kerajaan kita pandai gali untuk dompet mereka je
Without subsidy the Ron95 should be around RM 3.35 and it is 60% of current subsidized price. Gov can consider subsidized half, by that time Ron95 will be around RM 2.70. With 300 litre usage (likely not for 90% of cars) it is about RM195 higher. This amount is not low but it is not extremely high either.
In return gov should remove all kind of tax of EV car just like Tesla and also allow EV below 100k to enter into Msia market. EV car cost per km is cheaper than petrol. To control traffic in Klang Valley, raise the parking fee and toll fares.
Those people who complain raise of petrol will burden them a lot and also not afford for new EV despite the car below 100k, then you can choose to take public transport. Myrapid monthly pass is only RM 50. With more people taking public transport there will be more routes open for bus.
To control traffic is to raise parking fee? Is that your genius idea? Lol. No wonder you are not a VIP in real life. Failure. Firstly 1 person can buy a few cars but he can only drive 1 car at a time. So car sales does not reflect how many cars on the road. Secondly if more cars on the road, parking availability will automatically reduce already and to avoid wasting time looking for a car park, people will start using public trnasport or ride a bike. Automatically people will adopt new comfortable habit.
You worry too much. The world is good at self adjusting.
One man food is another poison or medicine. Next time vote those swallow poison.
I got a better idea make PH voters swallow poison for giving us this hell today.
Don’t worry, the top 3 “best” Malaysian states Penang, Perak, Johor and 1 wilayah KL would vote for DAP and PH to worsen the country again.
Hidup Anuar.. Bagus semua naik harga. Bagi semua benci kau bila cakap barang tak naik bila jadi PM.. Wow.. cerita dulu lagi.. Bila dah jadi PM. Semua naik. Biar kita mati derita aja
Tighten your belts, folks. Your salary is not going up that fast to adjust to the increase of food.
So the government going to do what with all those saved money, going into their pocket?! Might as well continue to give subsidies.
Fuh not a single comment. Everybody happy with increasing fuel price. Malaysian people rich already now
Ron 97 should also be increased by about 50 sen for Malaysian reg cars.. Malaysia still has one of the lowest petrol prices. Singaporeans are coming in to fill their tanks with Ron 97. They should be paying a lot more than 3.47 now. In Spore they are paying about S$3,25 per liter or RM11.37!! Even if RON 97 is 5 ringgit per liter Singaporeans will still be coming in to to fill up their tanks. Minister in charge should seriously look into 2 tier pricing , one for Singapore cars and another for Malaysian cars using RON97.
Based on FormulaMAN USD 77++ per tong currently.
FormulaMAN foresee CrudeOIL can reach USD 120 per tong again last peak 30MARCH2024. when CHINA fully recovers CrudeOils demand will hike even higher.
RM 1.50 perlitre is very possible IF Crudeoil is USD40perBARREL, YOU slowly WAIT laa
When comes to removing subsidies and stuff it’s always the same excuse saying this it to save Malaysia. The Rakyat have to sacrifice a little for our future.
So it’s always the Rakyat and we tax payers sacrificing.
What about our Politicians?
I do not see any sacrifice, only increase in benefits and big fat salary.
This failed gomen should step down
Amen brother!
So we get cars with lower taxes and duties in August?
You want your car kena luxury tax in August too?
No need increase. Unnecessary.
Never support paul tan since this is a scam statement
Sure kalah next erection. Cakap tak serupa bikin.
the poor become poorer …..as the rich cronies and menteri continue their rich lifestyle…
rakyat tertipu dan terus diperlembukan….
kroni diutamakan….
corruptions continue non stop…ular besar dilepaskan…
Say no to PH and DAP in the next election.