While the government has not indicated anything about the removal of blanket subsidies for RON 95 petrol beyond stating that it is presently studying the matter, there could be very little indication of the time frame for its introduction before it is implemented.
That’s what economy minister Rafizi Ramli implied when he said that the government will be replicating the same strategy for RON 95 petrol as it did for diesel, when there was no public advance notice on any decision to remove blanket subsidies, Malaysiakini reports.
Asked if the move will be implemented this year with a pre-announced timetable, Rafizi said that the government is keeping its cards close to its chest in the same way it did with diesel. “We did surprise everyone with diesel, and I think everyone is up for another surprise,” he told Bloomberg on the sidelines of the World Economic Forum’s summer gathering in Dalian, China.
He reiterated that the government remains committed to its diesel subsidy rationalisation programme for now. “For the time being, we are focusing on diesel, because the big leakages actually happen with diesel. I think we do need to make sure and learn from the process to improve the overall system,” he said, while downplaying concerns that the plan to abolish fuel subsidies would affect inflation in the wake of price hikes.
Meanwhile, in response to questions about Rafizi’s statement, prime minister Datuk Seri Anwar Ibrahim said that the government has yet to make any decision on the need to rationalise the RON 95 petrol subsidy, the Malay Mail reports.
The PM said that Rafizi’s statement primarily focused on targeted diesel subsidies, which the government is studying for implementation effectiveness. “I read Rafizi’s text; he mentioned that we are focusing on diesel, which needs careful consideration for its implementation,” he said
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