According to Straits Times , Malaysia is set to cut fuel subsidies by June, a major economic reform that will be a key test of support for the Pakatan Harapan-led unity government as the public grapples with high living costs.
Putrajaya will start cutting fuel subsidies by next month, with diesel prices being the first to be floated to market rate. This will take place within weeks after the Kuala Kubu Baharu by-election, The Stratis Times reports, citing sources.
After diesel, the retail rates for petrol will be increased in stages, it said. “The question has always been when and how, not if, we cut the subsidy. The prime minister wants it by June, so we have to quickly decide on how,” said an unnamed government top official.
Putrajaya has been planning to introduce a targeted subsidy mechanism for fuel as opposed to the current system Economy Minister Rafizi Ramli also has said that the targeted subsidy programme for RON95 petrol will be rolled out in the second half of 2024.
Fuel subsidies will be cut this year to reduce the national fiscal deficit in order to manage the sequence of subsidy cuts. In an interview with Bloomberg, Economy Minister Rafizi Ramli said the government was sticking to the plan as the risk of inflation looms.
Since last year, Rafizi has spoken about the targeted RON95 subsidy programme in the second half of 2024 to optimise its resources for those who need it the most. He had said that those in the T20 income group are receiving 53% of blanket fuel subsidies.
The blanket subsidies on RON95 fuel have reportedly taken up most of the total RM81bil in subsidies handed last year.
Source : Straits Times
Source : Malaysiakini
Source : BFM News
Communications Minister Fahmi Fadzil today said the cabinet has not discussed about a price hike for petrol and diesel yet.
Fahmi, who is also the Unity Government’s spokesman, dismissed international media reports suggesting that the government has decided to announce a price hike for petrol and diesel.
He said the matter has not been discussed by the cabinet before, including during last week’s meeting.
“I have studied the matter carefully and can confirm here that the matter was not discussed because I am also a cabinet minister.
“Therefore, don’t put the cart before the horse or don’t announce before it has been announced.
“We are aware that several foreign based media have pre-empt the process and I hope all parties, including the media, can obtain information from credible sources,” he said in his speech at the Jiwa Madani programme at SMKA (P) Al-Mashoor, here today.
The Coverage Malaysia
