A-G’s report: 182% subsidy hike in 2021 from 2020, highest for petroleum products

PETALING JAYA: A total of RM13.13bil was given out in subsidies by the Federal Government in 2021, an increase of almost 182% compared with the previous year, says the Auditor-General.

In the A-G report, he said the subsidies given out in 2020 totalled some RM4.66bil.

The highest amount in subsidies given was for petroleum products such as RON95, diesel and liquified petroleum gas (LPG) supplied by 14 companies which totalled RM10bil (76.3%).

Subsidies given out for these products in 2020 totalled RM1.63bil.

The highest amount in subsidy was for RON95 (RM4.47bil), diesel (RM2.9bil) and LPG (RM2.65bil).

The amount given out in 2020 was RM172mil, RM292.5mil and RM1.16bil respectively.

The AG said there was a massive hike in subsidies for petroleum products as the price of crude oil increased from US$42.2 per barrel in 2020 to US$70.5 per barrel in 2021.

Despite this, the selling price set by the government remained the same.

He said the toll subsidy increased from RM1.05bil in 2020 to RM1.34bil last year, a 27% increase.

The monies were paid to toll concessionaires in the form of compensation for discounts and to maintain toll rates for 21 expressways.

The AG said among the other subsidies given were for cooking oil sold in 1kg polybags and food aid totalling just over RM1bil.

He said the subsidy for cooking oil increased by RM450mil or 75.2% following the increase in the price of the commodity.

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