KUALA LUMPUR: The government has no intention of abolishing the weekly petrol price setting mechanism as it plays a role in national development.
Minister in the Prime Minister's Department Datuk Seri Dr Wee Ka Siong said it was important to allow the market to determine petrol prices as the previous subsidy allocated for petrol had not reached the targeted group.
"We cannot just go back to the old system where the government can subsidise up to 70 sen.
"If we keep giving on the subsidy, it will not generate more growth for us. Those receiving the benefit may not be the targeted group," he said at a press conference after launching the Malaysia SME Economics Conference Series 2017 today.
"When it goes down, no one says anything but when it goes up I know people feel the pinch," he added. "We cannot keep taking out money from the Treasury to pay subsidy to oil companies."
