Consumer associations have lauded the government’s plan to cut RON95 petrol subsidy for high-income earners starting June next year.
Malaysian Muslim Consumers Association (PPIM) head activist Datuk Nadzim Johan said the announcement was good news as the system was long overdue.
“PPIM has been pushing this matter for quite some time because we do not think it is fair for the rich to get the same subsidy assistance from the government.
“The parties involved should not delay the implementation and should just go for it,” he said when contacted.
He was commenting on the statement by Deputy Finance Minister Datuk Ahmad Maslan on Thursday that the ministry and the Domestic Trade, Cooperatives and Consumerism Ministry were finalising the mechanism and methods for the high-income bracket group to purchase the RON95 petrol according to market prices.
This, he had said, was to be fair to the low- and middle-income groups as only those qualified would receive the government’s subsidy.
He said a similar system would be implemented for diesel consumers starting January next year via the fleet card.
The current subsidised prices for RON95 and diesel are RM2.30 per litre and RM2.20 per litre respectively, after the 20-sen subsidy reduction on Oct 2.
Nadzim said while it would not be burdensome for the high income earners to pay the full market price for the fuel, some of them have extra responsibilities and big families to take care of.
“So I think those who fall within the high income bracket but in need of the subsidy should be allowed to apply for it,” he added.
Federation of Malaysian Consumer Associations (Fomca) secretary-general Datuk Paul Selva Raj said targeted subsidy would be more meaningful to the people.
“Subsidy is supposed to help the poor and those from the low income groups who have to struggle to make ends meet, especially with the rising cost of living.
“Many countries have implemented the targeted subsidy system and it is about time for Malaysia to do the same,” he added.
When contacted, Ahmad told The Mole that the move would probably see the low- and middle-income groups get additional subsidy for RON95, as the high-income group no longer enjoyed the privilege.
He said the level of subsidy would depend on the global market price.
“If the global market price increases, certainly the subsidy will also be increased.
“However, the plan is still on the drawing board and is yet to be finalised,” he said, adding that both ministries have yet to decide on the criteria of the high, middle and low income group classification.
He added that the Domestic Trade’s ministry was conducting a study to evaluate the feasibility of the system as well as evaluating incoming proposals to determine the mechanism of the implementation.
Ahmad said he did not expect a backlash from the high income group as the targeted system was meant to ease the burden of fellow Malaysians.
Article by: The Mole
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