![Update on proposed targetted fuel subsidy: 3 mechanisms mulled for 2024 rollout 01]()
The proposed targeted subsidies program is expected to be implemented after the Central Database Hub (PADU) system’s rolled out in January 2024, said Economy Minister Rafizi Ramli.
Responding to a Parliamentary question from Khoo Poay Tiong (PH-Kota Melaka), Minister Rafizi said the targeted subsidies for petrol and diesel will likely be implemented using three mechanisms, reports The Star.
The first mechanism will be based on individual net disposable income. The second will be based on net disposable household income through social protection or assistance schemes. The third will be a combination of household and individual earnings. The latter will be implemented using a subsidies card.
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"Besides the form and mechanism of targeted subsidies, the Cabinet will decide on implementation and follow-up plans," he said.
Currently RON 95 petrol is capped at RM 2.05 per litre, while B10 diesel is capped at RM 2.15 per litre.
Malaysia spent RM 20 billion in diesel subsidy in 2022, but only half of the fuel were sold through petrol stations, suggesting that there was huge leakage – cross-border smuggling for example.
Total fuel subsidies spent, including subsidies for gas, reached RM 45 billion in 2022, a figure that the government says is clearly unsustainable.
Over 15 years of experience in automotive, from product planning, to market research, to print and digital media. Garages a 6-cylinder manual RWD but buses to work.
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