Communications Minister Fahmi Fadzil said that the cabinet today did not discuss reducing the Budi95 fuel subsidy quota.
“At this time, the government is examining the implementation of diesel subsidies in line with Budi95,” he told a press conference this evening.
This comes after Deputy Finance Minister Liew Chin Tong clarified yesterday that he did not announce any government plan to reduce the monthly quota for subsidised RON95 fuel, following media reports that he said the quota could decrease to 150 litres per month.
Similarly, Fahmi said the reclassification of income groups was also not discussed in this week’s cabinet meeting.
There has been an increase in discussions on subsidies and income groups amid the conflict in West Asia, which has sparked a global energy crisis.
Putrajaya previously announced several austerity measures, as well as a reduction in the Budi95 monthly quota as a result of skyrocketing fuel prices.
Targeted subsidy
On May 9, Umno Youth chief Dr Akmal Saleh said the wing intends to table a motion at the next Umno supreme council meeting, proposing that fuel subsidies be withdrawn for those in the T20 income bracket.
He argued that a more targeted subsidy system would enable Putrajaya to redirect the savings towards assistance for lower-income groups who need it more.
However, the proposal was met with opposition from Pakatan Harapan Youth, whose chief, Woo Kah Leong, said that hostility towards certain groups does not solve any problems.
The next day, Prime Minister Anwar Ibrahim said that the government is studying the removal of subsidies for wealthier Malaysians to ensure the policy does not unintentionally place a burden on the upper-middle-income group.
He explained that the matter is being examined by the crisis management task force under the National Economic Action Council, which is led by corporate figure Hassan Marican.
Yesterday, Transport Minister Anthony Loke indicated that the study is ongoing and no final decision has been reached. - FMT
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