Anwar: no plans to rationalise RON95 subsidy

Bloomberg

Prime Minister Anwar Ibrahim has reassured the public that there are currently no plans to rationalise the RON95 fuel subsidy. This statement comes amid rising concerns over potential changes to Malaysia's fuel subsidy system.

During a recent press conference, Anwar emphasized that the government is committed to maintaining the subsidy to support the financial well-being of the rakyat (people). He highlighted that any decision regarding the subsidy would be carefully considered to avoid undue burden on citizens, especially those in the lower-income bracket.

Economic Considerations

The Prime Minister pointed out that while there are economic pressures to reconsider the subsidy, the government is prioritizing the welfare of its citizens. The RON95 subsidy is a crucial component in keeping fuel prices affordable for the general population. Anwar assured that any future decisions would be based on comprehensive data and analysis to ensure economic stability without compromising public interest.

Current Subsidy Mechanism

Malaysia’s fuel subsidy system has been instrumental in cushioning the impact of global oil price fluctuations on local consumers. The RON95 subsidy, in particular, has kept the price of this widely-used fuel lower than market rates, providing significant relief to households and businesses alike.

Future Prospects

While the government has no immediate plans to alter the subsidy, Anwar noted that ongoing studies are being conducted to explore more sustainable approaches. These studies aim to strike a balance between fiscal responsibility and public welfare, ensuring that any adjustments would be implemented gradually and transparently.

Public Assurance

Prime Minister Anwar Ibrahim’s assurance comes as a relief to many Malaysians who rely on the RON95 subsidy for their daily commutes and business operations. The government's cautious approach underscores its commitment to protecting the rakyat's interests while navigating the complexities of economic management.

As the situation develops, the public can expect regular updates and transparent communication from the government to ensure that all stakeholders are well-informed of any future changes.

Read More: RON95 subsidy removal won't hit car sales - MAA

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