KUCHING: The government has not made the final decision on the proposed introduction of the targeted fuel subsidy scheme for both RON95 and diesel, said Domestic Trade and Consumer Affairs Deputy Minister Chong Chieng Jen.
Chong said the initial proposed targeted petrol subsidy scheme was only for the B40 group but the Cabinet has yet to decide whether to maintain the current general fuel subsidy scheme or introduce the targeted fuel subsidy.
He said the government is still undecided whether to adopt a hybrid scheme, or whether the subsidy will still be confined to B40 or to include the M40 as well.
“This will be decided by the Cabinet ministers collectively and announcement is likely to be made during the tabling of the Budget on Oct 11.”
He said with the current general fuel subsidy scheme, the total estimated subsidy that the government pays to maintain the current fuel prices is approximately RM173 million per week.
“The total estimated subsidy paid out by the government to the oil companies to maintain the current price of RON95 at RM2.08 per litre and diesel at RM2.18 per litre is approximately RM7 billion a year, ” he explained.
Chong said given the high government debt, there is the fiscal pressure to reduce this subsidy burden on the government by introducing the targeted fuel subsidy scheme.
