The government is studying the need to rationalise the RON95 petrol subsidy.
The Minister of Economy, Rafizi Ramli however said, focus and priority is given to the implementation of the diesel subsidy for now until the targeting becomes stable.
“It thus achieves the set objectives, among which is to strengthen the country’s fiscal sustainability as well as reduce the leakage in the distribution of diesel subsidies.
“If the rationalization of subsidy on RON95 petrol is implemented in the future, the government will take appropriate measures to ensure that the affected people will be given appropriate assistance,” he said in a written reply in Parliament today.
He said this in response to Datuk Seri Richard Riot Jaem’s (GPS-Serian) question whether implementing the reduction of petrol subsidies had a positive impact on the people.
Commenting further, Rafizi said that the targeted implementation of diesel subsidies from June 10 is also expected to save RM4 billion a year.
In the meantime, he said, the implementation of the subsidy targeting initiative also helped the government to strengthen its financial policy position and utilize available resources.
“Savings from the subsidy retargeting initiative will be returned to the people through the implementation of programs and projects that are more beneficial and really needed by the people, such as improvements in the provision of social services and public facilities including health, education, transport and security,” he said.
