New targeted petrol subsidies coming soon says Deputy Finance Minister
The Vibes reports that Deputy Finance Minister, Datuk Seri Ahmad Maslan, stated at the Dewan Rakyat, that a staggering 35 percent, or RM17.8 billion of the overall RM50.8 billion in subsidies for petrol, diesel, and liquified petroleum gas (LPG) last year were enjoyed by the T20 income bracket, more than those in the B40 group.
According to the deputy minister, only 24 percent of the petrol subsidies were utilised by the B40 group with the remaining 41 percent enjoyed by the M40 group. Datuk Seri Ahmad Maslan said this is why the government is planning to implement a targeted version of the subsidy moving forward.
Moreover, the deputy minister also stated that targeted petrol subsidies will also help save more money and that savings from this can be used for other more meaningful purposes. “If we stop subsidising these (petrol subsidies) to the T20, we can save about RM15 to RM17 billion.” he said in the Dewan Rakyat today.
Datuk Seri Ahmad Maslan also mentioned that with other initiatives, the government can help the rakyat with the management of 26 ministries. This statement was a response to Datuk Ahmad Amzad Mohamed when he asked if the government intends to introduce targeted subsidies for petrol, among other initiatives.
On top of that, the Deputy Finance Minister also revealed that in total, the government had spent RM66.3 billion last year in consumption-based subsidies with the other subsidies including items like cooking oil, chicken and eggs, and electricity tariffs, to name a few.
Datuk Seri Ahmad Maslan also said while the issuance of petrol subsidies have helped reduce the impact of the rising cost of living, its implementation has also led to leakages and one example is the smuggling of diesel, noting that the vast difference in market value and the subsidised price of the good makes it highly sought-after.
He added that the government is currently reviewing the feasibility of implementing targeted subsidies as well as identifying its mechanism and if implemented correctly, I think this might help a lot. “Its implementation will still benefit a huge portion of Malaysians, without any major implications to the cost of living.” He said.
Now obviously, I will not pretend to know the situations of every person in the B40 and T20 groups but I think it is safe to say that the T20 group does not actually need any petrol subsidies while the B40 group will benefit greatly from it so I am all for these new proposed targeted petrol subsidies. What about you?
