Tag Archives: RON95

NEWS

Targeted RON95 subsidy should be based on vehicle type, says expert

The government has been urged to implement the targeting of RON95 petrol subsidies based on vehicle type rather than household or individual income.

According to Universiti Kebangsaan Malaysia’s Malaysian Inclusive Development and Advancement Institute (Minda-UKM) director, Professor Tan Sri Dr Noor Azlan Ghazali, the concept is similar to vehicle classification for toll payments on highways.

He further added that, in the context of petrol subsidies, the classification should be based on vehicle engine capacity.

“It is common for those with low incomes to use motorcycles as their daily transport, while wealthier individuals tend to use vehicles with larger engine capacities.

“If a wealthy person uses a Perodua Kancil, they should qualify for the subsidy because they consume less fuel.

“Of course, there will be some leakage in every classification, but it can be minimised,” he said at a special press conference on the 2025 Budget on Thursday.

Prime Minister Datuk Seri Anwar Ibrahim, announced in the 2025 Budget on Friday that the targeting of RON95 petrol subsidies is expected to be introduced by mid-2025.

Additionally, he stated that the government is advised to assist the underprivileged through alternative methods without disturbing market prices.

“I prefer to maintain market prices, and we cannot live in a state of denial.

“If we continue to suppress prices at a low level for an extended period, it will create a burden.

“If a war occurs in the Gulf countries, it will certainly lead to an increase in petrol prices; the public needs to be informed, and the government must provide assistance through alternative methods without interfering with market prices,” he said.

NEWS

RON95 petrol subsidy not to be implemented in the near future – PM

THE policy paper for the rationalization of subsidies for RON95 petrol has not yet been brought to the cabinet for implementation. This was stated by the Prime Minister, Datuk Seri Anwar Ibrahim.

He mentioned that the re-targeting of subsidies for this purpose would not be implemented in the near future.

“There is no policy paper that can lead us to implement it (the rationalization of RON95 subsidies) quickly. There have been studies all along, but we think it’s better to first observe the steps taken regarding electricity and diesel subsidies,” he said in the Parliament yesterday.

He responded to an additional question from Ahmad Fadhli Shaari (PN-Pasir Mas) who wanted to know if the government intended to implement the re-targeting of RON95 petrol subsidies.

Anwar, however, stated that in his opinion, the re-targeting of RON95 petrol subsidies should have been implemented long ago, but he was aware of various constraints that made it difficult to reinstate the subsidies for the fuel.

“If you ask me, re-targeting RON95 subsidies should have been done a long time ago. But this is not easy, as the problem we face is that 3.8 million foreigners are using this oil, just as the wealthy are. This is something that is crucial and important for us to halt,” he added.

He also criticized the opposition’s statement for continuously “manipulating” the issue of re-targeting diesel subsidies, claiming that it burdens the people.

“Until now, there are still those who are ‘riding’ on the issue with various accusations of the government being oppressive and claiming that subsidies have been completely withdrawn.

“Is the re-targeting of these subsidies a wise decision for the economy? All (Members of Parliament) agree, even though they expressed disagreement during the campaign.

“When (the previous government) was in power, they also said that (re-targeting diesel subsidies) was necessary, but because they knew it would heat up the political temperature (it was not implemented).

“However, I acknowledge that the implementation aspect can be disputed. I accept this, but what we are hearing now is only the accusation of an oppressive government, cutting subsidies and repeating the campaign (in the past), today in power, tomorrow oil prices will drop,” he said.