RON95 petrol subsidy rationalisation to proceed, as it will not impact vast majority of people – PM Anwar

Prime minister Datuk Seri Anwar Ibrahim says its RON 95 petrol subsidy rationalisation programme will proceed as planned. He said the government will stand by its decision to implement targeted subsidies for the fuel, as it would impact only a few, The Star reports.

“There is no issue of raising the price of petrol for the vast majority of up to 85% to 95% of our people. Will we do it? Yes, because subsidy rationalisation is critical for our nation. We want sufficient resources to help the poor, enhance education quality, and provide better public services, including health,” he said.

He criticised the opposition for creating a negative narrative about the government’s plan for RON 95. “Whatever the opposition says is just a desperate gimmick to show that people are facing hardship. There is more negative news from them when we need encouraging news to propel our economy,” he said.

The PM’s statements come in the wake of a more than 9% increase in global crude oil prices following the Israel-Iran conflict. Asked if the conflict and resulting rising global crude oil prices would affect the nation’s economy and government coffers, he told reporters it would not have an adverse impact for now.

“For now, I have discussed this with the secretary-general of the Organization of the Petroleum Exporting Countries (OPEC) and leading players. They are monitoring the situation very closely, but it does not necessarily affect the industry and price mechanism adversely,” he said.

There is still no indication as to exactly when the RON 95 rationalisation programme will be implemented, but In May, second finance minister Datuk Seri Amir Hamzah Azizan indicated that it will be rolled out in the second half of this year.

As of now, no concrete details of qualification levels (below T5, T10 or T15) have been revealed, and neither has the exact mechanism for the programme, but Amir Hamzah has said that the latter is likely to be based on a two-tier pricing system with both subsidised and non-subsidised prices, with MyKad determining things.

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Learn more: RON95 Fuel Subsidy