Fuel subsidies for May-July cost Putrajaya RM1.67b, says finance minister

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KUALA LUMPUR (Sept 12): The total subsidies borne by the federal government for RON95 and diesel fuels for the period from May to July this year was RM1.67 billion.

In a parliamentary reply to Senator Datuk Ng Chiang Chin, finance minister Lim Guan Eng said the goverment for the time being has maintained retail prices of RON95 and diesel at RM2.20 and RM2.18 a litre respectively, as per its decision on June 7, even though market prices were higher.

“This reflects the Pakatan Harapan (PH) government’s commitment to the rakyat’s welfare, expecially those in the B40 bracket,” he said.

Lim said the government would implement targeted fuel subsidies as per PH’s election manifesto.

He said the government would provide fuel subsidies at an optimal rate each month, using a quota system for qualified groups for the use of motorcyles of 125cc and below, as well as motorcars below 1,300cc.

“The mechanism for the targeted subsidy is being studied and will be announced once it is finalised,” Lim said.