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Govt Has No Plans To Reduce Fuel Price

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KUALA LUMPUR – Despite falling crude oil prices, the government has no plans to reduce fuel prices in Malaysia as it is still giving subsidies for RON95 petrol and diesel.

Deputy Finance Minister Datuk Ahmad Maslan said nevertheless the government had two options to take if global crude oil prices continued to show a downtrend.

He said for the first option, the government could reduce the price of RON95 and imposed a sales tax, and for the second option, it could reduce the fuel price and not imposed a sales tax.

“However, the second option would affect the country’s revenue for development,” he said when winding up debate on the Supply Bill 2015 at the ministry level in Dewan Rakyat here today.

Ahmad said the government was still paying subsidies of 28 sen per litre for RON95 petrol and 32 sen per litre for diesel.

On Oct 2 this year, the government announced the reduction in subsidies for RON95 petrol and diesel by 20 sen per litre. Following this, the new retail price for RON95 petrol is RM2.30 per litre and diesel RM2.20 per litre.

The current market price for RON95 petrol is RM2.58 per litre and diesel RM2.52 per litre.

Ahmad also explained that the fuel subsidies in 2013 amounted to RM23.5 billion, that is, 74 sen a litre for RON95 petrol and 76 sen a litre for diesel. – BERNAMA

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