Govt in Final Phase of Drafting Mechanism for Targeted RON95 Subsidy

The government is in the final phase of drafting a fair and effective mechanism for the upcoming targeted RON95 subsidy.

The government is expected to implement the targeted subsidy for RON95 petrol by mid-year, with the best mechanism set to be identified to ensure its benefits reach the intended groups.

As reported by The Star, the Domestic Trade and Cost of Living Minister (KPDN) YB Datuk Armizan Mohd Ali said the government is now in the final phase of drafting the targeted system, with an emphasis on keeping it fair and effective.

KPDN Minister YB Datuk Armizan Mohd Ali

"Currently, the target groups who will use the subsidised fleet card are being identified through discussions between the Cost of Living Ministry, the Finance Ministry, and the Transport Ministry, particularly the Road Transport Department (JPJ) and the Land Public Transport Agency (APAD)," he said in a written response to a question from Pasir Gudang MP YB Hassan Abdul Karim during the parliamentary session yesterday.

Concerns over the implementation of the targeted RON95 subsidy immediately surfaced after the government made the announcement last year, but the minister ensures that the new mechanism will be drafted to ensure all the benefits reach the intended groups. Armizan also emphasised that RON97 petrol won’t be included in the subsidy targeting since this fuel has been floated since June 2018.

He also explained that providing subsidised petrol to the right target groups can maintain the cost of services and the delivery of essential goods to the public, thereby preventing an increase in the cost of living.

On top of drafting the mechanism, the ministry will also enhance enforcement through the Price Control and Anti-Profiteering Act 2011 and the Price Control and Anti-Profiteering Regulations 2018.

"Through these regulations, the government will implement Ops Kesan to ensure no parties take advantage by unreasonably increasing prices due to the subsidy targeting," he said.

Source: The Star