News Updates

Govt To Introduce A Targeted RON95 Subsidy In The Second Half Of 2024

The Economy Minister, Rafizi Ramli has announced that the government will be implementing a new subsidy programme for RON95 fuel in the second half of next year, as part of the administration’s subsidy rationalisation initiative.

Rafizi announced the move at the National Economic Outlook Conference (NEOC), which took place at Menara Affin @ TRX, yesterday.

According to Rafizi, the introduction of a targeted subsidy programme for RON95 is in line with the government’s wishes to ensure that the subsidy is delivered to and enjoyed by those who need it the most, while also ensuring that Putrajaya’s resources are used in the most optimised manner.

Read More: Govt Looking At 3 Methods To Roll Out Targeted Fuel Subsidies In 2024

“Sidestepping issues of duplication enables the government to take a decisive step away from previous administrations,” said Rafizi in his speech, NST reports.

T20 are receiving 53% of the blanket subsidies

Rafizi also pointed out that the current system is flawed, as it is unsustainable to have a system where the T20 receive around 53% of blanket subsidies.

Currently, the RON95 petrol is subsidised by the government for all Malaysians, and the current selling rate is at RM2.05/litre.

The move for a targeted subsidy programme was first unveiled by Malaysia’s Prime MInister, Datuk Seri Anwar Ibrahim during the tabling of Budget 2024.

Malaysia’s Deputy Prime Minister, Datuk Seri Ahmad Zahid Hamidi also highlighted earlier that the current subsidy system is being taken advantage of by those who are not the target group for subsidised fuel.

In a speech at a cost of living symposium, Zahid stated that a recent report has found that those in the T20 income group spend RM399 per month on RON95 petrol while the B40 spend only RM243.

“Therefore, it is not appropriate for the government to continue with an approach that is inherently unfair to the target groups, namely the groups of people who truly need assistance,” said Zahid.

Read More: PM Gives His Answer On Why Petrol Prices Haven’t Dropped

Haziq Alfian

A reader turned writer, Haziq Alfian navigates personal finance, sports, and politics with a practical touch. From money matters to the playing field and political landscapes, Haziq aims at providing you with a grounded, unbiased, and simple look at the daily happenings of the world.

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