The retail price of RON95 fuel will be increased by 1 sen each week from January 2020 as the government begins to remove fuel subsidies.
At the Dewan Rakyat today, Deputy Domestic Trade and Consumer Affairs Minister Chong Chieng Jen said the price of the fuel would be gradually increased until it reaches market price.
He said allowing the price of RON95 to be floated under the automatic price mechanism (APM) would reduce the burden of the people and prevent prices from spiking once subsidies are removed.
He was responding to a supplementary question by Rubiah Wang (GPS-Kota Samarahan) on the steps taken by Putrajaya to prevent the prices of goods from increasing once fuel subsidies are removed.
Chong said Sarawak, Sabah and Labuan will not be affected as they will still enjoy the subsidised price of RM2.08 per litre.
“Many mechanisms can be used, including the Price Control and Anti-Profiteering Act, so that traders do not take advantage and rake in excessive profits once the targeted subsidy programme kicks in.”
The government previously announced that it would introduce a targeted fuel subsidy programme for some 2.9 million recipients of the Cost of Living cash aid.
The targeted fuel subsidy, which sees those eligible receive RM30 (car owners) and RM12 (motorcycle owners) a month, will cost the government around RM65.4 million a month.
A blanket subsidy is presently given nationwide.
Last week, the finance ministry said under the APM, the actual price of RON95 should be RM2.36 a litre.
Source : FMT