Ceiling price for Ron 95 may be lifted

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Kuala Lumpur: According to Minister of Domestic Trade and Consumer Affairs Saifuddin Nasution,  the ceiling price for Ron 95 maybe lifted and fuel subsidy would only available for BSH recipient in the future. The government is still considering the possibility removing the ceiling price while letting Ron 95 and Diesel price to float according to global fuel price.  This plan would enable to government to channel the fuel subsidy effectively and efficiently only to B40 Malaysians.

Saifuddin said the targeted subsidy mechanism is in it’s final stage where the ministry is waiting for the finalized updates on latest BSH recipient. The ministry is also considering whether to give cash or bank in the fuel subsidy directly to BSH recipients.

The price of Ron 95  and Diesel would be capped although global fuel price is rising. Once targeted subsidy is implemented, the ministry will also be looking at providing subsidies for flour, cooking oil and cooking gas. Other efforts are also been looked at to reduce the cost of living borne by the people such as removing middleman for a supply chain of basic goods.

The targeted fuel subsidy system is on schedule where the ministry is selecting vendor to implement the system that is easy to use. The preparation has been made to make sure the new system will be running smoothly without causing huge impact.

The government would able to save more cost while is able to help the B40 group with the new targeted subsidy mechanism. The decision would be known after the targeted petrol subsidy scheme is implemented. Early this year the government has capped Ron 95 at maximum RM2.08 per liter while diesel at maximum RM2.18 per liter when the weekly fuel price was reintroduced.