Putrajaya likely to introduce targeted fuel mechanism, says Azmin

Updated 1 year ago · Published on 21 May 2022 1:25PM · 1 Comments

International Trade and Industry Minister Mohamed Azmin Ali says Putrajaya will likely introduce a targeted fuel mechanism to cushion the impact of rising crude oil prices, especially for the lower-income group. – The Malaysian Insight file pic, May 21, 2022.

THE government will likely introduce a targeted fuel mechanism to cushion the impact of rising crude oil prices, especially for the lower-income group, International Trade and Industry Minister Mohamed Azmin Ali said.

He said the government is still working on a suitable structure following the sharp jump in the fuel subsidy projection for this year to RM28 billion, compared with RM11 billion last year.

“We talked about the review in a special retreat recently.

“Those with BMWs cannot enjoy the same subsidies as those with Kancil,” he said in a press conference in Kuala Lumpur today.

Last month, Petronas Dagangan Bhd disclosed that it had been working closely with the Finance Ministry on the increase of fuel subsidy bill amid near-record high crude oil prices.

Minister in the Prime Minister’s Department (Economy) Mustapa Mohamed also said the government is still working on a suitable structure for the targeted fuel mechanism, which is expected to be completed soon. – Bernama, May 21, 2022.

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Comments

  • The fuel subsidy comes from the taxes paid. The guy driving the BMW probably pays more taxes than the kancil driver who likely does not pay any taxes at all. The principle should be that all Malaysian citizens should be entitled to the subsidy. Foreigners pay the market price.

    Malaysia, being a net exporter of crude oil should ensure the benefit of high oil prices be enjoyed by all Malaysians. Lorry, Kancil or BMW drivers. For your information Azmin, many B40 people drive older BMWs and Mercs as they are cheap and affordable. So don't be too clever to try to cook up some target.

    Posted 1 year ago by Super Duper · Reply