Fuel subsidy: Cabinet has not discussed T20 income classification; focus on Budi Diesel – Amir Hamzah

The Malaysian cabinet has not discussed any new classification for the T20 income group, finance minister II Datuk Seri Amir Hamzah Azizan has said, reported New Straits Times.

The Malaysian government’s current focus is on the nationwide implementation of the Budi Diesel fuel subsidy mechanism, instead of introducing new income category classifications, he said.

“As explained by Communications Minister Datuk Fahmi Fadzil last week, the cabinet did not discuss any T-category classifications. Our approach is to focus on the implementation of Budi Diesel nationwide. We are using the same approach as Budi95 as we believe the system is comprehensive and fair to all,” Amir Hamzah said, adding that the government is working on expanding the mechanism to Sabah and Sarawak.

Fuel subsidy: Cabinet has not discussed T20 income classification; focus on Budi Diesel – Amir Hamzah

Last week, communications minister Datuk Fahmi Fadzil said that the government is studying the implementation of a diesel subsidy using a mechanism similar to that for the Budi Madani RON 95 (Budi95) scheme for petrol.

In response to calls by several groups including traders, transport operators and the National Union of the Teaching Profession (NUTP) to restore the previous 300 litre subsidised RON 95 petrol quota, Amir Hamzah said the government must balance subsidy spending with global supply uncertainties in light of the Middle East conflict, according to the report.

The reduction in the quota for subsidised RON 95 petrol from 300 litres to 200 litres a month was based on actual usage patterns recorded, where average consumption stood at 98 litres a month, Amir Hamzah said.

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