Economists have voiced support for a two-tier pricing mechanism for the upcoming RON 95 petrol targeted subsidy, saying that the method is better than cash assistance, Free Malaysia Today has reported.
“A well-structured two-tiered pricing model, supported by MyKad or e-wallet verification, can help to streamline subsidy distribution while minimising operational disruptions. With MyKad or an e-wallet system, individuals receive their subsidies at the point of purchase, ensuring that only those who are eligible benefit,” said Tan Peck Leong of Universiti Teknologi Mara.
The system ensures that only eligible individuals have access to subsidised fuel while minimising financial leakage to higher-income groups, making it an effective way of implementing targeted subsidies, Tan said. This will also enable the government to introduce a subsidy cap for better control of expenditure while providing support to those who need it most, he added.
Meanwhile, economist Geoffrey Williams was quoted as saying that tiered pricing is by far the best approach for implementing the targeted subsidies for RON 95 petrol, and said that “other methods are flawed”.
Williams said that tiered pricing would allow subsidised purchases for small volumes, and non-subsidised purchases for large volumes, however he disagreed with the decision to use MyKad or other forms of identification to verify as the method could lead to fraud.
“The MyKad and e-wallets can be cloned, sold or traded to get the subsidies. The simpler method is to charge subsidised prices in low volumes and remove the subsidy in stages for higher volumes sold at point of sale,” Williams said, adding that vouchers will lead to a black market for the trade of vouchers, and charging by vehicle type would not stop the wealthy from purchasing subsidised RON 95 petrol while driving more affordable cars.
A tiered pricing system may be better for handling inflation, especially if it is staggered over multiple levels or introduced slowly over time, Williams added. “This is because it does not introduce the price change across the board and can be spread out,” he said.
In February, domestic trade and cost of living (KPDN) minister Datuk Armizan Mohd Ali said that the rationalisation of RON 95 petrol that will be carried out by the middle of this year will use the mechanism that ensures its benefits reach the intended groups and correct people.
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Do replace your faulty chip Mykad at your nearest JPN branch. And stop being clumsy prone to losing your wallet purse Mykad wokay
Also we need to protest & democrazy demanding PH gomen to fulfill their RM1.50 petrol promise or else haul them out of Parliamen by force.
Better than giving free money to those who don’t pump at all.
I agree with prof William. It is not practical to use mykad or ewallet. Subsidised ron95 price for first 3litres. Then reduced subsidised for 5litres.. and exceeding 15litres no more subsidiy. That should help those on bikes and smaller cars
Change to RON91 , lower the price.
As above or else PMX please step down now!
The gov should come out the RON95 subsidy policy fast. The traffic in peninsular is worsening day by day. Every soon people will condemn gov to ease the traffic by building more highways. Reduce fuel subsidy, raise toll and car park fare. Make the cost of driving be more expensive then only people will consider taking public transport. When more people taking public transport then gov will know which routes need more buses and extend the MRT and LRT stations.
More cars on the road mean they consume more petrol and gov need to subsidise more. This is endless until gov step out to reduce the fuel subsidy. Gov yearly subsidy on fuel is tens of billion, saving a billion yearly enough enough to put hundreds of buses.
My housewife mom offered to tag along for my petrol refills. She said to use her mykad and tng app. She just don’t want to see her children’s hard earned salaries go to waste feeding gomen parasites
Rafizi n Amir Hamzah
Just simplify matters.
Just credit eligible rakyat with Rm400 to 500 monthly,thro bank transfer.No need listen to professors giving rocket science discourse.
Just like the STR bantuan…Rakyat senang.
Everyone pay market price at the pump.No need pump operators tell Banglas check this and that.
So with the petrol bantuan,eligible motorists can plan their car usage in advance.
the best solution is to use the money meant for Gaza to subsidise Malaysians. After all the money is from Malaysians.
the money went to anwar’s account in qatar… not gazans!
Unpopular opinion but one that will benefit the country in the longrun, push more rm50k electricc cars in market to adoptions, then remove subsidies.
Its gonna be paintful, but whats more painful is Rm30 billion subsidies given that coulde been redistributed equally to education and healthcare than short term relief, Thailand and Indoenesia doest get these subsidies and they have lower wealth income and they get by well.
Remember you only got 14 years of petrol left, we living on borrowed time. subsidies cant sustain forever.
Honestly you guys got 14 years of petrol left in Malaysia, Best to not live off these dying resources,
Better short term pain and long term gain. Move towards to Affordable electrification and decouple from cheap subsidized petrols. People are always worry of now, when the future is more grim if we dont intervene.
Lol