The federal government will start cutting fuel subsidies by next month, according to a news report, with diesel prices being the first to be floated to market rate.
Quoting sources, Singapore-based newspaper The Straits Times claimed that this will take place within weeks after the Kuala Kubu Baharu by-election on May 11.
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, as quoted by the news agency.
According to the report, Deputy Domestic Trade and Cost of Living Minister Fuziah Salleh told them that the price hikes will happen “soon”, but did not give a specific time frame.
Malaysiakini has sent requests for confirmation and comments to Fuziah and the office of Domestic Trade and Cost of Living Minister Armizan Mohd Ali.
The Anwar Ibrahim-led federal government has been planning to introduce a targeted subsidy mechanism for fuel as opposed to the current system, where every Malaysian regardless of their financial background is eligible to purchase subsidised petrol and diesel for personal use.
In February last year, the then Deputy Finance Minister Ahmad Maslan said the government could save RM17 billion if the top 20 percent income earners (T20) do not receive fuel subsidies.
He said this was because the government spent RM50.8 billion in petrol, diesel, and liquified petroleum gas (LPG) subsidies in 2022, of which 35 percent went to the T20.
Economy Minister Rafizi Ramli reportedly said that the targeted subsidy programme for RON95 petrol will be rolled out in the second half of 2024. - Mkini
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