SHAH ALAM: The government is expected to implement the targeted subsidy for RON95 petrol by mid-year, with the best mechanism set to be identified to ensure its benefits reach the intended groups, says Datuk Armizan Mohd Ali.
The Domestic Trade and Cost of Living Minister said that the government is now in the final phase of drafting a fair and effective targeting system to ensure its implementation achieves the set objectives, Malay language daily Sinar Harian reports.
He assured the public that this targeted subsidy would not lead to uncontrolled increases in the prices of goods and services.
"Currently, the target groups who will use the subsidised fleet card are being identified through discussions between the Cost of Living Ministry, the Finance Ministry, and the Transport Ministry, particularly the Road Transport Department (JPJ) and the Land Public Transport Agency (APAD)," he said in a written response published on Parliament's website Thursday (Feb 27).
There are concerns that petrol prices will rise if the government implements the retargeting of the RON95 petrol subsidy.
Armizan was responding to a question from Hassan Abdul Karim (PH-Pasir Gudang), who asked the ministry to clarify whether the implementation of the targeted subsidy for RON95 petrol by mid-year would lead to an increase in the prices of goods and the cost of living for the people.
Further commenting, Armizan emphasised that RON97 petrol is not included in the subsidy targeting since this fuel has been floated since June 2018.
He also explained that providing subsidised petrol to the right target groups can maintain the cost of services and the delivery of essential goods to the public, thereby preventing an increase in the cost of living.
To curb price manipulation, the ministry will enhance enforcement through the Price Control and Anti-Profiteering Act 2011 and the Price Control and Anti-Profiteering Regulations 2018.
"Through these regulations, the government will implement Ops Kesan to ensure no parties take advantage by unreasonably increasing prices due to the subsidy targeting," he said.
Additionally, the government remains committed to implementing various initiatives to alleviate the burden on the people, including the Festive Season Maximum Price Scheme, the Rahmah Madani Sales Programme nationwide, and the Budi MySubsidi Diesel to ensure public transport and goods companies continue to receive subsidised diesel via the fleet card.
"The Ministry is also expanding the Essential Goods Distribution Programme to rural areas and introducing the KITA GEMPUR initiative to ensure the welfare of the people is continuously protected.
"The Ministry hopes this effort can be jointly shouldered through close cooperation between the government, industry players, and the public," he said.
