PH spent over RM1.6b on petrol subsidies since taking power

KUALA LUMPUR: The Pakatan Harapan (PH) government has spent over RM1.6 billion to subsidise petrol prices since it won the elections up to July this year, the Dewan Negara was told today.
Deputy Finance Minister Datuk Ir Amiruddin Hamzah was responding to a question by Senator Datuk Ng Chiang Chin on the fuel subsidy that has been spent by the government to stabilise the prices of RON95, RON97 and diesel since May.
"For your information, the total petrol subsidy for RON95 and diesel between May and July 2018 is RM1.667 billion.
"At the moment, the government still maintains the retail price of RON95 and diesel at RM2.20 and RM2.18 respectively, although the market value is much higher than that," he said in the Upper House today.
The decision to maintain the RON95 and diesel prices was made on June 7, as part of PH's promise to stabilise fuel price, in an attempt to reduce the cost of living, especially among the B40 group.
Amiruddin said the price of RON97 was left to float according to market value on a weekly basis, as the fuel is considered a premium product used by those among the higher class.
He added that moving forward, the government would implement a targeted petrol subsidy system according to the PH pre-election manifesto.
"The government will provide petrol subsidy at an appropriate rate every month, and according to a quota that would be determined for eligible groups, namely motorcycles with 125cc capacity and below and 1300cc cars and below.
"The mechanism for this targeted subsidy system is being studied, and will be announced once its finalised," he said.