KUALA LUMPUR: The government is studying the need to include RON95 in its subsidy rationalisation efforts.
In a written reply to Parliament yesterday, Economy Minister Rafizi Ramli, however, said for now, the government's primary focus was on rolling out diesel subsidies until the targeting of these subsidies stabilises and leakage in subsidy distribution is reduced.
"Should the rationalisation of subsidies for RON95 be carried out in the future, the government will ensure all measures are in place to adequately support affected groups," he said in response to Datuk Seri Radzi Jidin (PN-Putrajaya).
Radzi was inquiring about the timeline for the full implementation of targeted subsidies, as mentioned by Prime Minister Datuk Seri Anwar Ibrahim on Nov 27, 2022, and whether the subsidy rationalisation for petrol will happen this year.
He also sought assurance from the government that the prices of goods will not continue to increase.
The ministry said the subsidy rationalisation would help the government strengthen its fiscal position and optimise available resources.
"Savings from the subsidy rationalisation initiative will be returned to the people through the implementation of programmes and projects that are more beneficial and genuinely needed, such as improvements in social services and public facilities, including healthcare, education, transportation and safety."
Anwar, in a national address on May 21, said the cabinet had agreed to implement targeted subsidy for diesel, saving the government about RM4 billion annually.
However, the targeted subsidy initiative did not apply to consumers in Sabah and Sarawak.
The government announced that effective June 10, diesel will be sold at the unsubsidised price of RM3.35 per litre at petrol stations in Peninsular Malaysia.