Gov't spending RM100m a week to maintain RON95 prices, says minister

PARLIAMENT | The government has to spend an average of around RM100 million a week to retain the pump price of RON95 at RM2.08 a litre, says Domestic Trade and Consumer Affairs Minister Saifuddin Nasution Ismail.

"On the weekly cost to retain the pump price of RON95 at RM2.08 a litre, the Finance Ministry estimated that RM99.76 million is needed based on the real pump price of RM2.37 a litre for the week between Oct 12 and Oct 18," Saifuddin told Kelvin Yii (PH-Bandar Kuching) during Question Time this morning.

Yii had asked the government to state its readiness to implement the targeted fuel subsidy programme (PSP), as announced under Budget 2020, as well as the current average weekly costs needed to subsidise RON95 petrol for all vehicles.

Saifuddin further said the targeted fuel subsidy review process has involved numerous consultations with stakeholders, to identify not only existing weaknesses but also its solutions.

To a supplementary question from Reezal Merican (BN-Kepala Batas), Saifuddin reiterated that his ministry is in discussions with the Finance Ministry to set-up a database of eligible recipients and to refine the required mechanisms.

"We used to work in silos. Everyone only takes care of their own territories.

"As a result, now we need to build on the credible data," he said.

The new database would comprise the existing B40 group of about 2.9 million Bantuan Sara Hidup recipients, as well as individuals under the M40 category.

Under Budget 2020, the government has allocated RM2.2 billion for the PSP scheme, which is targeted to benefit about eight million vehicle owners. - Mkini