According to Minister for Trade and Industry and Senior Minister Datuk Seri Azmin, the government may implement a targeted petrol subsidy mechanism.
Although the increase in international oil prices will bring additional revenue to the state, this is still not enough to offset the cost of fuel subsidies. Government subsidies on petroleum products amount to RM200 million in February 2021, RM2 billion in January 2022 and even more than RM4 billion in March 2022.
Currently, the government regulates RON95 and diesel, with the maximum price of RON95 petrol at RM2.05 per litre and diesel at RM2.15 per litre, while RON97 petrol fluctuates with market prices and has now been raised to RM3.81 per litre.
Azmin believes that BMW drivers should not be entitled to the same subsidies as fawn drivers, and that those who can afford to pay more should do so, while government subsidies should only be targeted at the poor.
Government subsidies should be available to all classes of people, even the rich who do not need them. If the government spent the subsidies given to the rich on other things, it would benefit more of the B40 low-income group and the disadvantaged.
