What is the future plan for RON95 petrol subsidies?

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The government is considering future rationalisation of RON95 petrol subsidies.

The federal government's current rationalisation of diesel subsidies is intended as a preliminary step towards a potential similar policy shift for RON95 petrol in the future. Treasury secretary-general Datuk Johan Mahmood Merican indicated that the Finance Ministry is actively exploring the possibility of rationalising RON95 petrol subsidies, though any definitive decisions are still premature.
Prioritisation of Diesel Subsidy Rationalisation

The decision to address diesel subsidies before RON95 petrol was driven by specific concerns about leakage. While petrol is widely used by the general Malaysian population, diesel usage presents a clearer case of commercial entities utilising it for unintended purposes. This distinction led the government to prioritise immediate action on diesel to begin the transition towards more targeted subsidy mechanisms.
Ongoing Consideration for RON95 Petrol

While the focus has been on the immediate term and the journey towards targeted subsidies, the possibility of better targeting RON95 petrol subsidies has not been discarded. This indicates a broader strategy to eventually move away from blanket subsidies towards more focused approaches that benefit the intended recipients more effectively.
Commitment to Targeted Subsidies

The government's approach, as articulated by Prime Minister Datuk Seri Anwar Ibrahim, acknowledges the unsustainable nature of blanket subsidies coupled with a low tax base. The current moves are part of a deliberate sequencing to initiate the transition towards a system of targeted subsidies, aiming to reduce leakages and government expenditure while mitigating the burden on lower-income groups.

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What is the future plan for RON95 petrol subsidies?

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