KUALA LUMPUR: The government plans to focus on the implementation of diesel subsidy rationalisation first before moving to cut back on subsidies involving the RON95 fuel.
“We are focusing on the diesel subsidy (rationalisation) first and when it is stable, we can see what else we have to do,“ Finance Minister II Datuk Seri Amir Hamzah Azizan told reporters when asked about when the rationalisation of the RON95 subsidy will be carried out.
He said this to reporters after his keynote speech at the Bank Negara Malaysia’s Sasana Symposium here today.
On Sunday, Amir Hamzah announced that the price of diesel at all Peninsular fuel retail stations was set at RM3.35 per litre starting Monday. When announcing the matter, he said that the new price was the market price without subsidies based on the average price of May 2024 according to the Automatic Pricing Mechanism formula.
The targeted pricing and implementation of diesel subsidies can provide savings of RM4 billion per year for the government while also strengthening the country’s financial position for the long term.
