Govt subsidised RM4.89bil for RON95, diesel for Jan-Nov 2018

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.

He added that once the government rolls out its targeted petrol subsidy programme before the end of this year, petrol and diesel would be floated freely based on market prices. - Bernama