KUALA LUMPUR: Various initiatives will be carried out to address potential price hikes due to the implementation of targeted subsidies for RON95 petrol and an increase in electricity tariff, says Datuk Armizan Mohd Ali.
The Domestic Trade and Cost of Living Minister said RM700mil was allocated for these intervention programmes under Budget 2025 to address the cost of living issues.
“We don’t expect the targeted subsidies for RON95 petrol to burden many. But, we saw the chain effects of the diesel subsidy rationalisation.
“So, I hope MPs will inform us if you see any price hikes so we can intervene and reduce the people's burden,” he said during his winding-up speech in Parliament on Monday (Feb 24).
Previously, it was reported that the base electricity tariff in Peninsular Malaysia will go up by 14.2% to 45.62sen per kilowatt-hour from July.
But Prime Minister Datuk Seri Anwar Ibrahim stressed that the tariff hike would not affect 85% of households in the country but only the industries and the rich.
During the tabling of Budget 2025 last year, it was announced that targeted subsidies for RON95 petrol would be implemented by mid-2025.
Armizan said his ministry has been compiling data for a study on the diesel subsidy implementation in July last year and that a report would be tabled to an executive committee in March.
“We will implement suitable intervention programmes to address price hikes that are caused by the rationalisation of diesel subsidies,” he said.
Armizan said despite concerns about potential price hikes following the rationalisation of diesel subsidies, inflation stood at below 2%.
“But, we do not deny that there will be price hikes.
“We don’t take things for granted. This is a concern that we must follow up with actions,” he added.
According to the Department of Statistics Malaysia, Malaysia’s inflation rate remained at 1.7% in January this year.
