Gov’t finalising RON 95 fuel subsidy mechanism, assures that prices of goods won’t go up – KPDN

The rationalisation of RON 95 petrol that will be carried out by mid-year will feature the best possible mechanism to ensure that its benefits reach intended groups and correct people, according to domestic trade and cost of living (KPDN) minister Datuk Armizan Mohd Ali.

He said that the government is now in the final phase of drafting a fair and effective targeting system to ensure that the implementation achieves the set objectives, as Sinar Harian reports.

He added that the target groups who will use the subsidised fuel are currently being identified through discussions between various agencies, including the finance ministry, the transport ministry, the road transport department (JPJ) and the land public transport agency (APAD).

Armizan said this in a written parliamentary response to a question from Hassan Abdul Karim (PH-Pasir Gudang), who asked the ministry to clarify whether the implementation of the targeted RON 95 subsidy would lead to an increase in the prices of goods and the cost of living for the rakyat.

Regarding these concerns, he assured the public that this targeted subsidy would not lead to uncontrolled increases in the price of goods and services. He said that to curb price manipulation, the ministry will enhance enforcement through the Price Control and Anti-Profiteering Act 2011 and the Price Control and Anti-Profiteering Regulations 2018.

“Through these regulations, the government will implement Ops Kesan to ensure no parties take advantage by unreasonably increasing prices due to the subsidy targeting,” he said. He added that various initiatives would be put in place to alleviate the burden on the people.

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