RON95 gasoline price expected to increase in July or October due to slight fuel subsidy adjustment – MIER
The Malaysian Institute of Economic Research (MIER) predicts there will be a “slight adjustment” in the RON95 subsidy and therefore retail fuel prices in Malaysia, and expects the price adjustment to be implemented in July or October this year after the impact of diesel prices. Subsidy rationalization has been evaluated and reported Bernama.
The adjustment is not expected to be as drastic as the retail price of diesel fuel increased by 56%, or RM1.20. from RM2.15 per liter to RM3.35 per liter earlier this week on June 10, MIER executive director Anthony Dass said.
“We need to look at the impact of diesel subsidy rationalization, so perhaps we need to give it a grace period of three to six months. First, we need to look at impact analysis and how people adjust. From there, the government can make further adjustments to RON 95 (gasoline price subsidy),” Dass said.
The RON 95 gasoline price adjustment is expected to be implemented “closer to October” as this will give the government more time to consider impact analysis, he added.
Regarding the contribution of diesel fuel prices to the consumer price index (CPI) basket, a 1% increase in diesel prices will result in a 0.2% impact on the consumer price index (CPI) basket, Dass said. therefore almost insignificant. Meanwhile, the contribution of RON 95 gasoline price to the CPI basket is about 5.5%.
Yesterday, Finance Minister II Datuk Seri Amir Hamzah Azizan said The government will focus on implementing a targeted diesel subsidy program Before deciding to move on to other related issues, when asked about the roadmap for implementing targeted subsidies for RON 95 gasoline.
The subsidy reform program being implemented by the government aims to reduce the country’s financial deficit so it’s possible Reinvest in the things that matter, said Amir Hamzah. “Over time, there has been leakage of subsidies due to smuggling of petroleum products and subsidies enjoyed by undeserving industries,” he said.
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