SERC urges government to rationalise RON95 subsidy in three stages

Socio-Economic Research Center (SERC) executive director Lee Heng Guie urged the government to rationalise the RON95 subsidy in three stages.

“We have advised the government that if adjustments to RON95 prices are necessary, they should be implemented in at least three stages rather than all at once, as the impact of RON95 is more widespread,” Lee said, reported Sin Chew Daily.

He also said that the government is expected to observe for at least six more months before deciding on implementing targeted subsidies for RON95.

Lee said it is possible that the decision will be made after the 2025 budget is announced on October 18.

“We estimate that the government will continue to monitor the impact of targeted subsidies for diesel for at least another six months before making a decision on RON95 petrol subsidies,” he said.

On June 10, the bulk diesel subsidy was ended and replaced with a targeted diesel subsidy, resulting in price fluctuations.

The rationalisation of diesel prices was implemented in a single stage.