Too early to tell if RON95 price float will cause inflation, says Saifuddin

KUALA LUMPUR: It is too premature to tell if the decision to float the price of RON95 following the targeted fuel subsidy scheme would cause any inflation, says Datuk Seri Saifuddin Nasution Ismail.

"It is too early to predict. Let's focus on our commitment to implement what we promise in our election manifesto.

"We are identifying the number of recipients and I would welcome if the data is not complete," the Domestic Trade and Consumer Affairs Minister told reporters at the Parliament lobby on Tuesday (Oct 8).

Asked why Sabah and Sarawak were not included in the scheme, he explained that the consumption of RON95 petrol was relatively lower compared to Peninsular Malaysia.

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Saifuddin added that fuel traders and operators had forecasted the global oil price to be around US$50 to US$60 per barrel.

The government announced on Sunday (Oct 6) that the price of RON95 will float according to the market once the targeted fuel subsidy scheme kicks off in January next year.

Under the scheme announced by the Domestic Trade and Consumer Ministry, only recipients of the Bantuan Sara Hidup (BSH) who are based in Peninsular Malaysia are entitled.

The subsidy will only be given to BSH recipients who owned cars with 1,600cc engine and below, as well as cars that are 1,600cc and above which are at least 10 years old.

Car owners who are entitled to the scheme will receive RM120 every four months; and RM48 every four months for motorcycle owners. - Star