Gasoline subsidy in Malaysia confirmed to be reduced this year – RON95 unsubsidized to RM3.38/liter?
Economy Minister Rafizi Ramli is said to have confirmed that Malaysia will reduce fuel subsidies this year to reduce the country’s fiscal deficit. Malay Letter reported and quoted Bloomberg.
The Malaysian government is still on the right track in focusing aid on the poor, Rafizi said, adding that the government “needs to manage the sequence” of subsidy cuts, as there is a risk of rising inflation. even before the cuts were made. “We are sticking to it,” Bloomberg quoted the minister as saying in an interview.
The government aims to reduce the fiscal deficit from 5% in 2023 to 4.3% of gross domestic product (GDP) this year and Rafizi said the country plans to phase out global subsidies. represents RON 95 gasoline, the fuel that accounts for the majority of the industry. The government spent RM81 billion last yearAccording to the report.
“To achieve the 4.3% financial target, a certain timeline must be adhered to. Otherwise, dollars and cents will fall,” Rafizi was quoted as saying by the news agency.
In Malaysia, only locally registered vehicles are allowed to use subsidized fuel – price available now at RM2.05/litre for RON 95 petrol and RM2.15/litre for Euro 5 B10 and B20 diesel – and RON 95 petrol is not subsidized went on sale in Perlis in February 2023 at RM3.22 per liter, with diesel at RM3.45 per liter at the time. According to the website of Double non-subsidized fuel store, unsubsidized RON 95 gasoline is sold at RM3.38/liter as of today (April 17).
Last year, Rafizi said the RON 95 gasoline subsidy program would replace the general subsidy program will be introduced in the second half of this year.
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