THE government is studying the need to expand targeted subsidies to include RON95 petrol, said Economy Minister Rafizi Ramli.
In a written parliamentary reply to Putrajaya MP Datuk Radzi Jidin, Rafizi said while this is the case, the government’s immediate focus remains on implementing the targeted diesel subsidy which began earlier this month.
“Currently, the government is prioritising the stabilisation of the targeted diesel subsidy to achieve objectives such as enhancing the country’s fiscal sustainability and reducing leakages in subsidy distribution,” he stated.
He added that any future adjustment to the RON95 petrol subsidy will include measures to adequately support affected groups.
On June 10, the government kicked off its fuel subsidy rationalisation programme with the announcement that diesel prices in Peninsular Malaysia will be floated, and will retail at RM3.35 per litre
According to Rafizi, the government will take the necessary steps to ensure that the affected groups would be accorded assistance should the RON95 petrol subsidy rationalisation be implemented in the future.
Through the diesel subsidy rationalisation, Rafizi expects the government to achieve annual savings of RM4 bil, which will be used to improve the quality of life for the wider public through the provision of quality public infrastructure and more comprehensive social protection.
“In addition, the implementation of this initiative would also help the government strengthen its fiscal position and optimise existing resources,” he remarked.
“Savings from the subsidy rationalisation would be channelled back to the people and into more beneficial projects such as the enhancement of social services and public facilities such as health, education, transport and security.” – June 26, 2024
Main pic credit: Bernama
