THE government is spending RM4 billion more, or double the sum it expected, on petrol and cooking oil subsidies this year, said Finance Minister Tengku Zafrul Tengku Abdul Aziz.

He said the government expected to spend up to RM8 billion on the subsidies, RM4.22 billion more than was originally set aside.

“Following the increase in commodity prices globally, subsidies for RON95 petrol, diesel and LPG petroleum products as well as subsidised cooking oil are expected to increase sharply.”

“A total of RM3.78 billion has been allocated for 2021 but based on current global market prices, the government is expected to cover subsidies of up to RM8 billion, RM4.22 billion higher than allocated,” said Tengku Zafrul in a statement.

Tengku Zafrul, who was appointed minister by Prime Minister Muhyiddin Yassin in early 2020, said the government was ready to pay more in subsidies for the sake of the people, especially small traders.

“The government will continue to assist the people through various measures,” he added.

On fuel prices, Tengku Zafrul said the cap remains at RM2.05 per litre of RON95 petrol and RM2.15 per litre of diesel.

“The price of LPG has been maintained at RM1.90 per kg since June 2015 and subsidised cooking oil at RM2.50 per kg since 1997.” – June 12, 2021.