The government is in the midst of testing mechanisms for a targeted fuel subsidy system but no timeline has been set for its execution, according to the Finance Ministry.
Its minister Tengku Zafrul Abdul Aziz said the government is testing several proposals on the table to determine the best measures for execution before presenting one to the cabinet.
He noted a study by Bank Negara Malaysia which showed for every RM1 of fuel subsidy, 53 sen goes to the T20 group while 15 sen is utilised by the B40.
“We will test and decide when we are comfortable with the mechanism and the platform of how we execute it.
“Obviously the customers’ experience would vary in the rural areas as well as the city,” he told reporters after witnessing the launch of the Edotco sustainability blueprint and report 2021 today.
Zafrul said he would go on the ground to petrol stations to test the mechanisms or the platform proposed to the government.
The government previously estimated that the subsidies for this year would reach RM77.7 billion, meaning that the fuel subsidy would reach RM30 billion.
“Last month, it (fuel subsidy) already reached RM5 billion a month,” he added.
- Bernama
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