New petrol subsidy system not finalised

BANTING: The government is still studying the structure and implementation mechanism of the proposed petrol subsidy rationalisation system that will be based on the motorist's income level.
Deputy Finance Minister Datuk Chua Tee Yong said the ministry will discuss the issue with the relevant ministries, agencies and organisations before finalising the system.
"At the moment, we are still studying the system. We also have to look into the agencies that will help us successfully implement the system," he said, adding that the ministry also need to identify the income bracket or group of people that will continue to enjoy subsidised fuel with the subsidy rationalisation, expected to be implemented by the middle of next year.
Speaking to reporters after officiating at the Finance Ministry's family day at Paya Indah Wetlands today, Chua said the ministry will cooperate with the Domestic Trade, Cooperatives and Consumerism Ministry and the Economic Planning Unit on the system and its implementation.
He said he does not want the public to speculate that the government has already finalised the system and that it will be implemented in the near future.
"An announcement will be made once the Cabinet gives the approval," he said, adding that he expected this to happen only next year.
He said subsidy rationalisation is important for the development of the country as the government has spent RM43 billion last year in subsidy.
Chua said the government wants to ensure that only those who qualify for subsidy benefit from the new system.
Asked whether a biometric system will be used, he said the ministry is looking at every possible method.
Last Thursday, Deputy Finance Minister Datuk Ahmad Maslan said under the new system, motorists in the high-income group will have to pay the full market price of RON 95 petrol beginning June 2015.
In response, Federation of Malaysian Consumers Associations (Fomca) deputy president Mohd Yusof Abdul Rahman asked the government to define "high-income earners" as the level of income differs from one region to another.