14 Jun - 2 min read
The Malaysian government is expected to provide fuel and cooking oil subsidies of up to RM8 billion this year – which is RM4.22 billion higher than the original RM3.78 billion originally allocated for 2021.
In 2020, the government spent RM2.16 billion on fuel and cooking oil subsidies while in 2019 a total of RM6.32 billion was spent.
Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said that the higher allocation this year was due to an increase in current global market prices. Following the increase in commodity prices globally, it is expected that government subsidies for RON95 petroleum products, diesel, liquefied petroleum gas (LPG), and subsidised cooking oil will increase sharply.
“The government is prepared to bear the higher subsidy expenditure to preserve the well-being of the people and the viability of business, especially small traders,” said the finance minister. Tengku Zafrul added that the government would continue to help the people through various measures, including continuing to subsidise fuel and cooking oil to reduce the impact of rising commodity prices on the people’s cost of living.
According to Tengku Zafrul, the government will continue the price maintenance policy of RM2.05 per litre for RON95 petrol and RM2.15 per litre for diesel. Meanwhile, LPG has been maintained at RM1.90 per kg since June 2015 and subsidised cooking oil has been kept at RM2.50 per one kg pack since 1997.
Furthermore, the finance minister said that various Budget 2021 measures and improved initiatives through PERMAI, PEMERKASA, and PEMERKASA+ will continue to be channelled at least until the end of the year.
(Source: The Star)
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