The government will still subsidize petrol and cooking oil.
To protect people from rising inflation, the government will continue to subsidise gasoline and cooking oil!
The government will maintain its current subsidy strategy, according to information released by the State Budget Office. International oil prices have risen to almost $100 per barrel as a result of the Russian-Ukrainian conflict, whereas the government’s 2022 budget is predicated on $67 per barrel.
This means that the government’s budget has been substantially blown, yet the existing subsidies scheme will be maintained.
According to the head of the National Budget Office, Malaysia’s RON95 gasoline would remain at RM2.5 per litre, which is the cheapest in comparison to oil-producing countries such as Saudi Arabia, where surrounding countries must pay double the price. The price per litre of RON95 petrol is now as high as RM4 if the government does not subsidise it.
Furthermore, international oil palm prices regularly reach new highs. While the current international price is close to RM10, the government would continue to sell edible oil in 1KG bags at RM2.50.
The government is also keeping the RM500 million poultry and egg subsidy.
