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).

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Monthly Plan

RM 13.90/month

RM 11.12/month

Billed as RM 11.12 for the 1st month, RM 13.90 thereafter.

Best Value

Annual Plan

RM 12.33/month

RM 9.87/month

Billed as RM 118.40 for the 1st year, RM 148 thereafter.

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