T20 enjoying RM8bil in fuel subsidies, says Tengku Zafrul

 

The government is testing a targeted fuel subsidy mechanism to ensure it benefits those in need, says finance minister Tengku Zafrul Aziz.

PETALING JAYA: The top 20 (T20) is enjoying some RM8 billion in fuel subsidies compared to the RM6 billion enjoyed by the bottom 40 (B40), finance minister Tengku Zafrul Aziz revealed today.

Tengku Zafrul, who previously lamented that the blanket subsidies were benefiting the rich more than the poor, said the government will implement a more targeted fuel subsidy mechanism.

In a written parliamentary reply, he said the mechanism is being tested.

“The (initial) testing will be followed by more extensive testing,” he said, adding that the government wants to ensure the feasibility of the mechanism in urban and rural areas.

“It (testing) is expected to take between three and six months before the new system is implemented nationwide,” he said in a response to a question from Nurul Izzah Anwar (PH-Permatang Pauh) on what the government is doing to ensure subsidies were better targeted.

Tengku Zafrul said the implementation of the targeted fuel subsidy mechanism will be implemented in stages to ensure it does not cause inflation or affect economic growth.

This year, fuel subsidies are expected to cost the government around RM30 billion. - FMT