KPDN - Targeted RON 95 petrol subsidies could be determined based on vehicle's horsepower

With global fuel prices rising and the Malaysian government spending at least RM 40 billion in subsidies in 2022, talks of targeted fuel subsidies don’t seem to be going away any time soon.

In fact, one of the elements that the government will use in identifying targeted petrol subsidies would be the Road Transport Department (JPJ) database. Minister of Domestic Trade and Cost of Living (KPDN), Datuk Seri Salahuddin Ayub said the ministry had discussed the matter with the Ministry of Finance (MOF), Economy Minister Rafizi Ramli and JPJ.

“In terms of data (targeted subsidy), it is almost complete for us to forward it to the Prime Minister (Datuk Seri Anwar Ibrahim) on how we can implement this targeted subsidy,” he told reporters.

Salahuddin said the JPJ database could be used for RON 95 petrol subsidies since the government can identify those eligible to receive subsidies based on the horsepower of the vehicle they own.

Also read: Say goodbye to blanket petrol subsidies soon, government putting forward targeted assistance

The minister added that the proposed paper on targeted subsidies was presented during the meeting of the National Action Council on Cost of Living (NACCOL) that was chaired by the Prime Minister last Tuesday.

“The Prime Minister has given instructions for (targeted subsidy mechanism) to be studied. For the time being, the government is continuing the existing policy which is that we do not withdraw (subsidies) or increase any tariffs that we feel could burden the people,” he said. “So the policy will continue until the Cabinet decides on (targeted subsidy) later.”

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