Decision on RON95 subsidy to be made soon, says Saifuddin
PUTRAJAYA: The decision on whether the subsidy for RON95 will be retained or lifted will only be made when the targeted petrol subsidy is implemented.
Domestic Trade and Consumer Affairs Minister Datuk Seri Saifuddin Nasution Ismail said the matter would be decided by the cabinet soon.
“We have two options — to lift or retain the ceiling price of RON95 at RM2.08 per litre. I will study which is the best option and bring it to the cabinet,” he said at a session with the media, here, yesterday.
The government had capped RON95 at RM2.08 per litre and diesel at RM2.18 per litre when the weekly fuel price mechanism was introduced.
On when the targeted petrol subsidy would be introduced, Saifuddin said the mechanism was being finalised.
“We are waiting for the Bantuan Sara Hidup secretariat to give us the updated list of eligible recipients from the bottom 40 per cent of household income (B40) group.
“We are also considering whether the subsidy should be given in the form of cash or credited into bank accounts.”
Saifuddin said the ministry was also looking at targeted subsidies for cooking oil, flour and liquefied petroleum gas.
“By doing this, the government can achieve big savings and hopefully, we would be able to extend the subsidy to the middle 40 household income group. This is our vision.”
It was reported that the RON95 subsidy mechanism needs to fulfil three key features — smooth and user-friendly, has high-security features and could be used at all petrol stations.
The Finance Ministry had issued a request for proposal for the implementation of the targeted petrol subsidy.
Saifuddin said the government was also looking at ways to reduce the high cost of living.
“We are looking at removing the middleman. Other efforts include the introduction of ‘Food Bank Siswa’, an extension of the Food Bank Malaysia programme, to help university students from the B40 group or poor families.”