The fuel subsidy plan and inflation

TA Research sees limited impact from the proposed diesel subsidy cut plan.

PETALING JAYA: The proposed subsidy rationalisation programme for fuel will help government finances, but concerns remain about its inflationary impact.

The programme will start with diesel fuel, which will be rationalised in Peninsular Malaysia first and is estimated to save RM4bil annually or 0.2% of the gross domestic product (GDP).