International crude oil prices have risen dramatically, and the government is making easy money?
International crude oil prices have risen dramatically; is the government making easy money? This is not the case; as the worldwide crude oil price rose, the government was forced to pay RM28 billion in fuel and gas subsidies.
According to a message from Finance Minister Tengku Zafrul, the total subsidy last year was only RM28 billion, and the government will have to pay RM28 billion in fuel and gas subsidies alone this year.
Zafrul also detailed the amount of money allocated to each category, including RM7.7 billion for education, RM2 billion for agriculture, RM1.9 billion for transportation, and RM130 million for poultry and eggs.
The government’s allowance programme now helps everyone, so whether you’re a T20 high-income group, an M40 middle-income group, or a B40 low-income group, you can profit from the government’s allowances.
As a result of this condition, T20 high-income groups have a lot of spending power, which allows them to take advantage of additional government subsidies.
Using RON95 gasoline as an example, the B40 low-income group will be concerned about not being able to purchase fuel, so they will decrease driving and only consume 80 litres per month. The monthly consumption of gasoline for the T20 high-income group with great economic capabilities can reach 120 litres, thus they have larger fuel allowances.
The administration intends to implement a tailored subsidy structure that will benefit low-income groups while excluding high-income groups from receiving government assistance. However, the government is still considering how to put it in place, such as requiring the presentation of a MyKad card when purchasing gasoline.
