PUTRAJAYA, July 28 — Economy Minister Rafizi Ramli has today confirmed that a reduction in the retail price of petrol, particularly RON95 and diesel, has never been discussed at the government level.
He said that should such a move arise, any decision to lower fuel prices would rest with the Ministry of Finance since the matter involved subsidies.
“I have not heard about it and there are no discussions regarding any proposal to lower the price of RON95 and diesel.
“Until now, which is seven months of various economic-related discussions in the government, there has never been a single mention of a proposed lowering of fuel prices. Perhaps MIDF Research can explain where this information was obtained,” he said after attending the 2022 household income and expenditure survey presentation here, today.
On July 25, Malay daily Berita Harian reported that according to a research note by MIDF Research, it said that the government is expected to consider lowering the retail price of fuel in the near future, especially RON95 and diesel, taking into account the continued increase in food inflation in addition to the pressure on consumer incomes.
MIDF Research’s analysis suggested that if the government proceeds with a 10 sen reduction in the price of RON95, setting it at RM1.95 per litre in the upcoming month, Malaysia’s headline inflation rate is projected to decrease to 2.9 per cent for the year 2023. This reduction is expected to be driven by non-food inflation moderating to 1.3 per cent and transport inflation contracting by 1.7 per cent.
The news portal reported the research note said that if the 10 sen cut is implemented by the end of this year, the monthly inflation rate would decline to 1.9 per cent year-on-year. As a result, the government could potentially free up an additional RM4.31 billion for fiscal spending, which can be allocated to various other goals.
