This will answer your question about the duration of fuel subsidy. The Minister of Economy, Rafizi Ramli recently confirmed that the government will cut down petrol subsidies this year to shrink the country’s fiscal deficit.
Rafizi said the reduction will be gradual and the government is on the right track to provide targeted assistance to groups in need.
In an interview with Bloomberg, Rafizi said the established timeline must be adhered to to achieve the fiscal target of 4.3%.
Late last year, Rafizi reportedly said the government would implement a RON95 targeted subsidy program in the second half of 2024. He said 2024 would see the government’s efforts towards basic implementation, with the establishment of the Primary Data Base (PADU) in January 2024 providing access to the granular data needed to implement targeted programs such as subsidy rationalisation.
And there is a reason why the government is taking some time to implement the new subsidy program.
“We want to ensure the subsidy program runs smoothly. Once it’s implemented, we cannot afford another U-turn.”
Rafizi added, “Last year, I spoke about this matter. I know analysts out there are asking why it’s taking so long. It’s because we see it being done in other countries. The important thing is to make sure everything is ready.”
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Previously, the research firm estimated that the subsidy rationalisation process and timeline would be implemented in stages, taking cues from the government’s goal of reducing fuel subsidies by RM6 billion by 2024 compared to the record high RON95 and diesel subsidies of RM41.75 billion in 2022.
Do you think it’s time for the government to cut down on fuel subsidies?
Also read: “RM400 Of Petrol Is Cheap” – M’sian Gets Criticised For Filming Herself Refueling Lamborghini
