Govt plans balanced solution on fuel subsidy

The rating agency said the average price of RON95 fuel fell only 0.3% year-on-year (y-o-y) in April, compared with a 4.4% y-o-y decline in March.

KUALA LUMPUR: The government is evaluating the most balanced solution on fuel subsidy for RON95 next year when it is not too inflationary for the nation and yet remains accommodative for the people.

Minister of Entrepreneur Development Mohd Redzuan Md Yusof said the government is currently in the midst of discussing subsidies allocation for 2019, including fuel subsidy, which is scheduled to be announced during the 2019 Budget  announcement on November 2.

"We are still drafting it (2019 Budget). We still have not come to a number (for subsidy)...Whether there will be an increase or decrease (in the fuel subsidy). This is something that we will see in Parliament (during 2019 Budget). We are trying to make estimation on how it's going to impact on our economy.

"We are also heading towards reducing our status as consuming nation. There will be an increase in development expenditure (in 2019 Budget) as we are moving towards a producing country," he told reporters after launching the beautyexpo 2018 here, on Friday. - Bernama


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