New Fuel Subsidy Mechanism To Be Unveiled In A Few Weeks Time
A new plan to restructure fuel subsidies is now ready and will be announced by Prime Minister Najib Abdul Razak in a few weeks time, said Second Finance Minister Ahmad Husni Mohamad Hanadzlah
“The (subsidy restructuring for) commercial vehicles will be implemented first and that for passenger cars will come later,” Husni said after last Friday’s tabling of Budget 2015.
To date, there are no details announced yet as to how will the current fuel subsidy structure be changed, but the government has repeatedly mentioned that the purpose of the revision is to ensure a more targeted subsidy.
At last Friday’s tabling of Budget 2015, Prime Minister Najib said, “At present, the Government allocates more than RM21 billion a year to subsidise RON95 petrol, diesel and LPG cooking gas. As a result, the allocation for subsidies has increased 14 times from RM1.65 billion in 2002 to RM23.5 billion in 2013, solely to maintain the low retail petrol price. This is due to the increase in number of vehicles from 13.6 million units in 2008 to 23.7 million units in 2013.”
“To ensure a more targeted subsidy and taking into account the rakyat’s awareness and readiness to subsidy rationalisation, the Government will develop a new mechanism for providing petroleum subsidy. I will announce the new mechanism soon,” he added.
Although details are still lacking, it is quite reasonable to expect that a large number of middle-class income users who currently rely on subsidised RON95 petrol are unlikely to be able to continue to enjoy the same benefit next year.
This article was first published on our sister-site LiveLifeDrive.com.
sumber asal http://blog.carlist.my/2014/10/news/new-fuel-subsidy-mechanism-to-be-unveiled-in-a-few-weeks-time/
sumber asal http://blog.carlist.my/2014/10/news/new-fuel-subsidy-mechanism-to-be-unveiled-in-a-few-weeks-time/
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