Petrol subsidy – gov’t to hand out cash directly to lower income households, to drop under-1.5L scheme

September 8, 2019

Dateline 2019-07-19, Paultan.org:

The government is expected to finally announce the targeted fuel subsidy scheme soon, and it looks like the original plan to offer subsidies based on vehicle engine capacity has been dropped, the Malay Mailreports.

During Budget 2019, finance minister Lim Guan Eng said that the government planned to subsidise owners of vehicles and motorcycles with engine capacities below 1,500cc and 125cc respectively a subsidy rate of 30 sen per litre, for RON 95 petrol. This would be capped at 100 litres per owner of a vehicle and 40 litres for those with motorcycles.


Ministry to hold meeting on targeted petrol subsidy

August 29, 2019

Dateline 2019-07-13, The Sun Daily:

The Ministry of Domestic Trade and Consumer Affairs will hold meetings with stakeholders and media agencies to convey information on the implementation of targeted petrol subsidy before it is introduced later this year.

Minister Datuk Seri Saifuddin Nasution Ismail (pix) said among the stakeholders were consumer associations, petrol station operators, oil companies and other agencies including Bank Negara Malaysia, Department of Statistics and Customs Department.

“The stakeholder engagement has been made and the session will be continued from time to time. We are very committed to delivering information to them.


Trimming fuel subsidy bill

December 20, 2014

Dateline 2014-10-14, Malaysia Reserve:

The government expects to cut down substantially its fuel subsidy bill with the proposed fuel price mechanism that could differentiate between eligible and non-eligible buyers at the pump.

Finance Ministry Secretary General Tan Sri Dr Mohd Irwan Serigar Abdullah said the fuel subsidy mechanism that will be introduced before the end of the year will weed out those not eligible for subsidy.

Under the present blanket fuel subsidy, non-eligible motorists including foreign vehicles are also enjoying the subsidy.

Mohd Irwan said the recent reduction of 20 sen per litre in fuel subsidy will save the government about RM1 billion per month from October, which translates to RM4 billion in total for 2014.

“We do not expect to collect as much savings from that unless we introduce this new and more targeted fuel subsidy mechanism soon,” he said in Kuala Lumpur yesterday.

 


Malaysians could see fuel subsidy cuts after Najib victory

May 18, 2013

File this under ‘obvious’

From Platts, 2013-05-06:

Malaysians could witness their first fuel subsidy cut in 2 1/2 years, following the victory of incumbent Prime Minister Najib Razak in the Sunday elections, HSBC said in a note Monday.
According to the bank, Najib, who has made fiscal reform his priority, could look at cutting subsidies as early as this year.
Malaysia subsidizes 95 RON gasoline and diesel, the prices of which were last raised by MR0.05 ($0.02)/liter to MR1.90/liter and MR1.80/liter, respectively, on December 1, 2010.
Subsidies on 97 RON gasoline were removed in July 2010, and the fuel is subject to a managed float, where the price is determined by an automatic pricing mechanism that tracks international oil price movements.


Petrol Prices

October 1, 2012

Y’know, a while back they actually included how much tax was waived. I think the amount is the same as or more than the subside.

Maybe the powers that be decided that showing that information is an oops? Get the relevant act here.

 


Fuel subsidies must come to an end, says Malaysia PM Razak

July 24, 2012

Dateline 2012-07-03:

As Malaysia enters the developed world status, the country’s Prime Minister Najib Razak has said that the government must look at ending fuel subsidies in the near future.

The announcement has left some Malaysians worried that they could be forced to pay higher premiums even as minimum wages in the country remain somewhat stagnant.

“I have no problem losing the subsidies, but we also have look at increasing our wages to combat the extra money we’d be forced to pay,” transport driver Mohsen Saturk told Bikyamasr.com.

“We all want to keep moving forward, but the people can’t be lost in the process,” he added.


PM: Country can’t run forever on fuel subsidy

July 21, 2012

Yes we can, right up to the next election at least.

Dateline 2012-07-02:

The country cannot rely on fuel subsidy-driven consumption to prop up the economy in the long run, said Prime Minister Datuk Seri Najib Tun Razak.

He acknowledged that Malaysia has one of the lowest pump prices in Southeast Asia – second only to Brunei Darussalam – but pointed out that the country needed to reposition its oil-based revenue towards economic development.

“If we use all our riches to provide fuel subsidies, that will increase consumption. If we increase consumption, we do not build productive assets for our country’s future and, one day, oil will be depleted, there will be less oil, the amount of oil production will go down and at that time we will face a grave situation.

..


Petronas CEO calls for end to gas subsidies

July 5, 2012

Woo hoo!

Dateline 2012-06-04:

Petronas is urging Putrajaya to stop gas subsidies, saying today the mechanism hampered transparency and dampened demand for investment.

Tan Sri Shamsul Azhar Abbas, the chief executive of the state oil company, said in his opening address at the World Gas Conference here today that countries with large gas reserves kept rates low to promote economic growth but heavy subsidies ultimately led to energy inefficiency.

“I believe gas prices should be left to be determined by market forces,” he said at the forum that drew 4,500 gas industry professionals from around the world.

“Industry players will have the flexibility to manage their own risks, work to deliver security of supply and meet demand at market prices.”


Solving oil and gas subsidy problem

May 12, 2012

Ah, near election time.

Dateline 2012-05-05:

THE argument against subsidising the country’s oil and gas has been made time and again, yet the decision to do away with it remains one that no government would be glad to make in a hurry.

One need only point to the recent examples of mass riots in Nigeria and Indonesia, where thousands took to the streets after their governments removed subsidies for fuel, as evidence that no matter the logic, this is hugely unpopular.

Nonetheless, it is a situation the Government has to resolve, and soon, as demand for gas heats up in the region.


Minister: RON95 petrol subsidy up 10 sen, pump price unchanged

April 15, 2012

Dateline 2012-03-27:

The government’s subsidy burden for RON95 petrol rose by 10 sen per litre this month due to increasing global oil prices said Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob today to the Star.

He said that the total subsidy per litre is now RM1.03. RON95’s pump price presently is RM1.90 per litre.

Ismail Sabri said the government does not want people to bear the burden.

Last December RON95 pump price was raised 5 sen.

Late last month, Prime Minister Datuk Seri Najib Razak assured Malaysians that RON95’s — which is used by most motorists — present price would be sustained regardless of global oil prices.