KUALA LUMPUR: Government interventions to cushion the impact of rising global fuel prices must be complemented by public cooperation in managing fuel consumption to minimise inflationary pressures and protect household finances.
CGS International Securities Sdn Bhd head of economics Ahmad Nazmi Idrus said the government’s targeted fuel subsidy mechanism under the Budi Madani RON95 programme had served its purpose well in shielding consumers from the worst effects of inflation and protecting household spending.
While spillover effects on prices of goods and services that are not administered or controlled by the government remained, he said the overall impact had so far been manageable, as reflected in the moderate Consumer Price Index (CPI) performance.
“That said, the CPI is rising given the stronger feed-through effects and the struggle is on how the government manages this impact.
“Thus far, there have been measures including personal income tax cut, the RM100 Sumbangan Asas Rahmah payout and minimum wage to help soften the blow,” he told Bernama.
