KUALA LUMPUR: The price of RON95 petrol will increase one or two cents every week once the fuel Targeted Subsidy Programme begins next year until it matches the market price, says the Domestic Trade and Consumer Affairs Ministry.
"When we begin the targeted subsidy scheme, we will float the price of petrol to help reduce the cost of living, as well as to ensure that the prices of goods do not rise dramatically.
"We will float the price of petrol in stages, maybe two cents a week or one cent a week, until the price of RON95 reaches the market price," its Deputy Minister Chong Chieng Jen said in reply to Rubiah Wang (GPS- Kota Samarahan).
Rubiah had asked for the Government's plans to curb the rising cost of goods once the targeted subsidy scheme starts in January next year.
Chong said a bulk subsidy scheme would be implemented in Sarawak and Sabah with the price of RON95 maintained at RM2.08 per litre.
He also said that enforcement action would be taken under the Price Control Act 1946 against unscrupulous traders who take the opportunity to increase their prices for extra profit.
The RM2.2bil fuel Targeted Subsidy Programme is expected to benefit more than eight million motorists.