Government will consider economic conditions when deciding on targeted RON95 subsidy implementation

The government says it will take into account the current economic situation when deciding on the implementation of its RON 95 rationalisation programme, Bernama reports.

According to deputy economy minister Hanifah Hajar Taib, the implementation of a targeted petrol subsidy required an in-depth evaluation at the cabinet level, including feedback from the relevant ministries. “We need to look at the economic conditions. Hence, any proposals will first be presented to the cabinet,” she said.

Her comments come in the wake of calls made by lawmakers last week urging the government to defer its plans to introduce the petrol rationalisation scheme as well as the increase on electricity tariffs, given the uncertainty taking place in the global economy.

The government has indicated that it plans to introduce targeted RON 95 subsidies sometime in the middle of this year, but has so far not revealed details of the plan. Up to March, the government had yet to define how it would establish eligibility for targeted subsidies as well as define a mechanism despite having reviewed four proposals.

Finance minister II Datuk Seri Amir Hamzah Azizan has said that the mechanism would be based on a two-tier pricing system with both subsidised and non-subsidised prices, with MyKad determining things.

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