THE T20 income group is estimated to be enjoying up to RM8 billion in petrol subsidies this year, said the Ministry of Finance (MOF).

It revealed the evaluation in a parliamentary written reply, citing figures from the Department of Statistics that showed RON95 usage by the T20 group to be at 32%.

“Of the estimated RM27 billion that is allocated for RON95, the B40 income group is expected to get RM6 billion; the M40, RM13 billion; and T20, RM8 billion,” said MOF.

“According to a Department of Statistics household expenditure survey, RON95 usage according to income groups is B40: 22%, M40: 46% and T20: 32%.”

The ministry said that the amount of RON95 subsidies enjoyed by the T20 group was almost the same as the Bantuan Keluarga Malaysia cash handouts.

“The RM8 billion can build 16 300-bed hospitals, or 160 schools with 30 classrooms each.

“The RON95 subsidy leakage to the T20 group can be used to help lower income groups in the form of more cash handouts,” MOF added.

As such, the government is reviewing the petrol, diesel and gas subsidy mechanism to make it more targeted, the ministry said.

MOF said that Malaysians only pay half of the real costs for petrol, diesel, gas, and cooking oil.

“Although the RON95 and diesel-subsidised pump prices are (capped) at RM2.05 and RM2.15 per litre, the market price in June 2022 reached RM4.70 per litre for RON95 and RM5.40 per litre for diesel.”

MOF was responding to Ahmad Maslan (Pontian-BN) who asked the government to state the value of subsidies given for 2019 - 2022 and how much of the petrol subsidies were enjoyed by the three income groups.

On the subsidies given, MOF said the government spent RM26.5 billion in 2019, RM23.3 billion in 2020, and RM37.3 billion in 2021.

“Although Budget 2022 had allocated RM31 billion for subsidies, the total subsidy bill is expected to rise to RM77.7 billion after the government decided to continue subsidies in light of higher commodity prices,” said MOF. – July 21, 2022.