No Hidden Tax Applied To RON97 & Diesel Pricing

Deputy Finance Minister Lim Hui Ying clarified that no hidden taxes are applied to the weekly retail prices of RON97 petrol and diesel. These prices are determined using a controlled float mechanism, not the Automatic Pricing Mechanism (APM).

This clarification was made during a recent parliamentary session in response to concerns about alleged hidden tax collection on RON97 and diesel through the APM formula.

Lim further explained that since the introduction of targeted diesel subsidies in June 2023, diesel retail prices have been set weekly under the controlled float mechanism.

Regarding the absence of targeted diesel subsidies in Sabah and Sarawak, Lim stated, “Diesel is extensively used for economic activities and development programs and projects in these states. Additionally, the challenging geography of these regions limits the implementation of the ‘fleet card’ mechanism, which requires more suitable infrastructure, especially in remote areas.”

She noted that the government is conducting studies to explore the possibility of implementing targeted diesel subsidies in these regions. However, she emphasized that this process will require more time.

In response to questions about weaknesses in the targeted diesel subsidy implementation, Lim acknowledged that the government is closely monitoring these issues through regular engagement with relevant parties and industries. She also noted that challenges are inevitable when implementing new systems.

Source: Berita Harian