PUTRAJAYA: A two-tiered pricing system is expected to be implemented for RON95 petrol subsidies, says Economy Minister Rafizi Ramli.
However, the specific mechanism for this system will be decided at a later date as the government is still in discussions with various stakeholders, including the Petrol Dealers Association.
“Previously, we considered providing cash payments to families, but this would not involve petrol stations because it doesn’t include tiered pricing.
“So, it depends on how the government plans to redirect the savings.
“Will it be through cash payments or direct subsidies to the 85% of the population?” Rafizi told reporters during the 2024 National Statistics Day Celebration and Statistics Portal Kick-Off Ceremony yesterday.
On Friday, Prime Minister Datuk Seri Anwar Ibrahim, who is also the Finance Minister, announced in his Budget 2025 speech that targeted subsidies for RON95 petrol would be implemented by mid-2025, however adding that 85% of the population would continue to receive the subsidy.
Anwar noted that the government had subsidised RON95 to the tune of RM20bil through 2023.
Meanwhile, Rafizi said the system for RON95 will differ from the targeted subsidy programme used for diesel.
“For diesel subsidies, we use the fleet card, but we cannot issue fleet cards to all 30 million people.
“This is currently being discussed and reviewed by all relevant agencies, led by the Economy and Finance ministries,” he added.
