KUALA LUMPUR, June 14 — The federal government today restated its commitment to not lowering the current ceiling price of RON95 petrol and subsidised diesel so as to avoid bearing higher subsidies.
Finance minister Datuk Seri Anwar Ibrahim said the government spent RM66.3 billion alone in consumption subsidies which included items such as fuel and natural gas, electricity tariffs, cooking oil, and even poultry prices.
“To continue protecting consumers from the rising price of crude oil in the global market, the government will maintain the current ceiling price for RON95 and diesel to date, even though the real market price for both products has exceeded the prescribed limit.
“As prices of crude oil are still showing an unstable trend following continued economic uncertainty, the government has no intention of reducing the existing ceiling price,” he said in a parliamentary reply to Larut MP Datuk Seri Hamzah Zainudin today.
Hamzah had earlier asked Anwar to state whether the government has a formula to lower oil prices in the near future.
At present, the ceiling price of RON95 is fixed at RM2.05 and diesel at RM2.15 per litre respectively.
In May, the government announced that the implementation of targeted fuel subsidies for RON95 petrol and diesel is expected to begin next year.
In February, Deputy Finance Minister Datuk Seri Ahmad Maslan told the Dewan Rakyat that the government could save up to RM17 billion if the T20 income group was not given petrol, diesel, and liquid petroleum gas (LPG) subsidies.
