PUTRAJAYA does not need a supplementary budget to subsidise the price of RON95 petrol, even if global prices exceed the RM2.08 per litre ceiling price, said Finance Minister Lim Guan Eng.

He said the government was able to bear the subsidy as it has some savings.

“For this, I don’t think there is a need (for a supplementary budget),” he told reporters after handing over a cheque to Restu Foundation to manage the printing of Qurans at the Nasyul Quran Complex in Putrajaya today.

On the maximum amount the government is able to bear for the subsidy if global prices top RM2.08, Lim said it depended on the market price of the petrol. 

He said what is important is that the ceiling price for the fuel was lowered to lessen the financial burden on the people. 

Yesterday, Lim had announced that the ceiling price for RON95 petrol would be lowered from RM2.20 to RM2.08 per litre. 

He said this means consumers will not pay more than RM2.08 per litre for RON95 even if the market price goes up as the government will subsidise the difference. 

The government capped the price of RON95 petrol at RM2.20 per litre in January when it introduced the weekly floating prices for fuel.

The price of diesel was capped at RM2.18 per litre, which remains unchanged.

Meanwhile, Lim said the government was also able to bear the RM300 in Cost of Living Aid for each household and RM100 aid for unmarried youths due to savings it has and is expected to make. 

“If there are any savings, we will definitely share it with the people. This is some of it,” said Lim. 

The first batch of the RM300 aid payment was undertaken on January 28. 

Last week, Lim had also announced an additional RM100 annually to unmarried persons registered as an aid recipient. 

He had said that the payment will benefit three million recipients, and involve RM300 million in costs. – February 28, 2019.