With fuel prices soaring, the Government is mulling adjusting its subsidy mechanism for fuel prices in the country, this was conveyed to reporters by Internation Trade Minister, Datuk Seri Azmin Ali.
He said the government is likely to introduce a targeted fuel mechanism to cushion the impact of the rising crude oil prices, especially for the lower-income group. The Finance and Trade Ministry has been involved in keeping the petrol and diesel prices way below the global average by subsidising the difference for the general public or especially the B40 to afford to purchase.
There is no formula on how this will be implemented, but Azmin said the government is still working on a suitable structure following the sharp jump in the fuel subsidy projection for 2022 to RM28 billion, compared to RM11 billion in 2021.
“We talked about the review in a special retreat recently. Those with BMWs cannot enjoy the same subsidies as those with Kancil,” he said during a press conference.
Last month, Petronas Dagangan Bhd disclosed that it had been working closely with the Ministry of Finance on the increase of fuel subsidy bill amid near-record high crude oil prices Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed also said the government is still working on a suitable structure for the targeted fuel mechanism, which is expected to be completed soon.
