Targeted Subsidies For Petrol, Diesel Will Use Three Mechanisms - Rafizi Ramli

Rafizi Ramli predicts that three mechanisms will likely be used in 2024 to implement targeted subsidies for petrol and diesel, The Star reported. The first mechanism will be based on each person's net disposable income.

The second and third will use a combination of household and individual earnings and be based on net disposable household income. They will be implemented through social protection or assistance programmes and through the use of a subsidy card.

Rafizi said that the targeted subsidies programme will be implemented after the Central Database Hub (Padu) system is launched in January of next year.

He also added that  the implementation and follow-up plans for form and mechanism of targeted subsidies will be decided by the cabinet soon.

"These will include communication, engagement, and support plans to alleviate people's burdens, which will be coordinated by the entire government machinery," he said.

For the record, Rafizi recently stated that the PADU database is currently 72% complete and that 29.8 million cross-ministerial and agency data have been compiled. Once the database is complete, the targeted subsidy distribution process will be carried out fairly to eligible households.