Najib suggests to raise the price of RON95 fuel by 10 to 20 sen per litre.
Najib proposed that the government raise the retail price of RON95 fuel by 10 to 20 sen per litre.
According to a Facebook post by former Prime Minister Datuk Seri Najib Razak, as the price of RON97 gasoline has risen, many T20 high-income groups have switched to RON95 fuel, prompting Najib to propose that the government raise the price of RON95 fuel.
Najib stated that the 65 percent drop in domestic RON97 fuel sales demonstrates that many people who originally purchased RON97 fuel switched to RON95 fuel.
The government will subsidise RM125 if the T20 high-income group purchases 50 litres of RON95 gasoline. If these groups refuel three times per month, the government will be subsidising them with an RM4,500 per year, which is more than the cash assistance provided by the government to the B40 and M40. Najib compares this behaviour to rich people taking food from a food bank.
Najib believes the government can raise the price of RON95 gasoline but not diesel because diesel prices have a direct impact on production and transportation costs, which will eventually be reflected in inflation.
