Govt testing new fuel subsidy system

KUALA LUMPUR: A targeted subsidy mechanism for fuel is currently being tested by the government before its implementation, says Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

However, he said no specific timeline had been set for the rollout as it was subject to a decision by the Cabinet.

“The decision on this will only take place when we are comfortable with the mechanism or the platform to execute it.

“For the time being, the discussion continues on the targeted subsidy but, more importantly, we need to ensure the right mechanism.

“So I cannot commit to the timeline because we need to go back to the Cabinet and present it.

“We’re looking at various platforms because obviously, the customer experience will be very different between rural areas and those in the city,” he said after launching the telco infrastructure services company edotco Group’s sustainability blueprint and report titled “Sustainable and Equitable Access for All” here today.

Last month, Tengku Zafrul assured consumers that the withdrawal of subsidies for petrol would not happen anytime soon.

He said the government still had sufficient funds to continue providing the subsidy despite rising global crude oil prices.

The amount of subsidies for this year is expected to reach RM77.7bil, with the fuel subsidy alone set to reach RM30bil.

In June, the fuel subsidy already reached RM5bil a month, according to Tengku Zafrul.