KUALA LUMPUR: The government paid a total of RM4.89 billion in RON95 and diesel subsidies for the period from January to November last year, Minister of Finance Lim Guan Eng said today.
The subsidies consisted of RM2.73 billion for RON95 and RM2.15 billion for diesel.
Lim said for November 2018 alone, the government subsidised RM4.1 million for RON95 petrol and RM209.1 million for diesel, which is heavily used in the commercial and industrial sectors as well as the general public in Sabah and Sarawak.
“The simple truth is that the government did subsidise RON95 and diesel in November, albeit at a lower cost compared to the previous months,“ he said, refuting allegations that the government has been taxing petrol.
In October last year, the subsidies amounted to RM534.9 million for RON95 and RM426.3 million for diesel.
Lim said if the automatic pricing mechanism (APM) prices drop further, the government would adjust the prices downward so that Malaysians can benefit from lower fuel prices.
“As shared earlier, the government is implementing a floating mechanism in January 2019 where pump prices will fall on a weekly basis if APM prices decrease further,“ he said in a statement.
He said if APM prices rise, the retail prices would be stabilised at the current fixed levels at RM2.20 per litre for RON95 and RM2.18 per litre for diesel.
Meanwhile, Domestic trade and consumer Affairs Minister Datuk Seri Saifuddin Nasution Ismail said the fuel price mechanism will be revealed tomorrow.
He said the Cabinet meeting chaired by Prime Minister Tun Dr Mahathir Mohamad on Jan 2 had reached a decision on the matter, which took into account the interests of all parties.
“The Cabinet had discussed on the matter with depth taking into consideration of stakeholders’ views,“ he told members of the media after officiating the Chinese New Year’s “Ong Mali” promotion at Tesco Kepong.
