Anwar says there is no policy document yet on RON95 subsidy cuts

KUALA LUMPUR (July 2): There is no policy document yet to implement the RON95 subsidy cut, said Prime Minister Datuk Seri Anwar Ibrahim.

While studies have been carried out on moving away from blanket subsidies towards a targeted approach to RON95, Anwar said the government intends to assess the effects of rationalising subsidies for electricity, chicken and diesel for now.

“We will first observe the effects and people’s reaction before discussing whether there is a need to implement the targeted subsidy of RON 95,” Anwar told the Dewan Rakyat during the Prime Minister’s Question Time on Tuesday.

Anwar, however, stressed that government subsidies must not go to the ultra-rich and foreigners and the government will not compromise on this issue.

“I do not rule out the possibility of rationalizing subsidies for RON95 petrol in the future, but the government is now focusing solely on rationalizing subsidies for diesel fuel,” he said.

Following the rationalisation of diesel subsidies that began in early June, potential government moves to reduce costly, universal RON95 petrol subsidies are being closely watched by the market and investors.

Last week, Economy Minister Rafizi Ramli said the government was still examining the need to extend targeted subsidies to include RON95 petrol.