The sight of packed petrol stations last night was all it took to alert everyone else that petrol prices were about to go up. Early yesterday evening, various media outlets reported that prices of petrol and diesel will be raised by 20 sen from midnight.
The new price of RON95 petrol is RM2.30 per litre while diesel is RM2.20 per litre.
The government had decided to reduce the fuel subsidy by 20 sen, which is line with its subsidy rationalisation plan. Despite reducing the subsidy, the government will still need to spend more than RM21billion to subsidise RON95, diesel and liquid petroleum gas (LPG) this year.
In a statement released on Wednesday, the Domestic Trade, Cooperatives and Consumerism Ministry said that the government will continue to implement the subsidy rationalisation in stages to ensure that the lower income group will not be burdened.
“We understand that fuel price increases will affect the economy and the people. Therefore, we will continue to provide incentives to the lower income group to alleviate their burden,” said the Ministry.
“The giving of subsidy needs to be more targeted and not in bulk, which non-Malaysians, including foreign tourists, also enjoy.”
“These steps will be able to produce appropriate savings and can be used for more productive expenses such as education development and training, health, a wider and more efficient public transportation system as well as national security.”
According to The Star, the ministry’s plan to reduce fuel subsidy is also in line to ensure that the government remained on the right track to reduce fiscal deficit in stages – from 3.9% of the Gross Domestic Product in 2013 to 3.5% this year, 3.0% in 2015 and a balanced budget in 2020.
The last time the price of petrol and diesel was increased was in September last year.
Story and quotes from: The Star
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