Just when you thought that the targeted fuel subsidy for RON95 is just around the corner, it gets a ‘delayed’ announcement.
The Star reported that Datuk Seri Ahmad Maslan made this statement in Parliament earlier this week regarding the targeted fuel subsidy postponement as the government is currently working to introduce the mechanism for electricity and diesel first.
According to the Deputy Finance Minister, “We are looking into targeted subsidies for electricity and diesel. We might delay targeted subsidies on RON95. When will the targeted subsidies be implemented? Wait for the announcement.”
For now, electricity tariffs are being subsidised for low-voltage non-domestic users that include micro-businesses and SMEs. The targeted fuel subsidy for RON95, however, will hopefully balance the books a bit as the government might save up to RM17 billion once it’s live.
To put things into perspective, around RM50.8 billion was forked out by the government last year just for the subsidies of petrol, diesel, and LPG (liquified petroleum gas). That’s a lot of dough and based on what Tengku Zafrul stated back in the middle of 2022, over RM8 billion of the fuel subsidies were ‘enjoyed’ by the T20 group.
Hopefully, the implementation of tax for luxury goods and premium products will tip the scales more favourably once it comes into play later this year, most likely in June.