Priority On Diesel Rationalisation Before Ron95 Mof


 


The government will only focus on the implementation of the diesel subsidy rationalisation for now, said Finance Minister II Amir Hamzah Azizan.
Speaking to reporters today, he emphasised the pertinence of seeing through the execution of the targeted subsidies for diesel before looking at cutting the subsidy for RON95 petrol.
“We understand that we need to implement the rationalisation of subsidies.
“We will start with diesel first, for now.
“When we are stable (with the rollout of diesel subsidy rationalisation), we will see what else can be done next,” he said after launching Bank Negara Malaysia’s Sasana Symposium 2024 at Sasana Kijang, Kuala Lumpur today.
This comes after Maybank Investment Bank was reported as saying the government must cut petrol subsidies as soon as possible to achieve the savings targeted in Budget 2024.
The investment bank’s chief economist Suhaimi Ilias said Putrajaya must raise the price of RON95 by 32 sen per litre beginning July 1.
“A simulation made by the investment bank indicates that the price of RON95 petrol would need to be increased by 32 sen, or 15.6 percent, to RM2.37 per litre starting July 1 to achieve the RM4.1 billion savings needed to meet the RM11.5 billion target,” he said.
Currently, the price for RON95 petrol is capped at RM2.05 per litre.
‘Best way to manage’
On queries about why the targeted diesel subsidy efforts were not implemented via a more focused approach, Amir said this was “the best way to manage” it.
“In fact, in terms of diesel subsidy, in the Subsidised Diesel Control System (SKDS), there are tiers where fisherfolk would receive a different rate.
“And those who are already receiving assistance would get a different rate while individuals will receive aid via cash transfers.
“That’s the mechanism the government thinks is better for now,” he added.
Bachok MP Syahir SulaimanYesterday, Bachok MP Syahir Sulaiman questioned why the targeted diesel subsidy efforts were implemented at a “flat rate” instead of a more focused approach.
The PAS lawmaker also urged the government to explain whether the petrol subsidy system would be similar.
“Why is the RM200 Budi Madani aid given at a flat rate without taking into account the eligible recipients’ income level, the reason for use, the locality and distance, as well as the recipients’ vehicle make and engine capacity?
“Would a similar flat rate system be used to channel the petrol subsidy aid, which is assumed to be RM100 a month, for every eligible household?” Syahir asked in a statement.
He also questioned how data is being stored under both the Central Database Hub (Padu) and Budi Madani web portals. - Mkini


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