PUTRAJAYA: The government will ensure the price of RON95 petrol for consumers who are not eligible to receive targeted subsidies, won’t see a huge hike once it is floated based on the market rate.
Domestic Trade and Consumer Affairs Minister Datuk Seri Saifuddin Nasution Ismail said this was because a huge margin increase would have a direct impact on the Consumer Price Index (CPI), thereby causing inflation.
“Say on the first day of execution (of the floating price system), the price difference is 30sen. We do not want that to happen.
“Although it should be increased by 30 sen, it will be done gradually within a certain period of time, for example between six to eight months,“ he said during a press conference after the ministry’s monthly gathering here today.
He said the ministry also gained insight from the Statistics Department which simulated the impact of rising fuel prices at a certain rate on the increase in CPI, in order the set fuel prices.
Asked whether the fuel prices would be set weekly or monthly as was done by the previous government, Saifuddin said the matter was still being discussed with the Finance Ministry
“Previously it was decided on a weekly basis. We have received a lot of feedback from the petrol dealers and oil companies and also the public (on the matter).
“So we have to look into it as a whole to decide what would be the best format,“ he said.
Saifuddin Nasution said today was the last day for submitting tenders to develop the targeted oil subsidy system and the Finance Ministry was expected to announce the winning bidder in the near future.
The tender for the project involves proposing, studying, designing, developing, supplying, installing, testing and monitoring, as well as operating the hardware, software and application for the targeted oil subsidy system for RON95 petrol which is expected to be implemented in the second quarter of 2019. — Bernama
