RON95 rationalisation not anytime soon

Prime Minister Datuk Seri Anwar Ibrahim made it clear that changes to RON95 rationalisation are off the table for now.

He said the government will concentrate on clarifying the rationalisation of diesel subsidies to the people first before moving on to RON95.

“It is not an issue and we (will) deal with diesel (first), to make people understand it (diesel subsidy rationalisation) better, which is sometimes twisted (by certain quarters).

“I already said that if there is a problem with diesel, let me know. We don’t want to burden the people, but if we don’t do it (the subsidy rationalisation), the country’s revenue won’t increase,” he said, after officiating the National Tax Conference 2024 today.

Anwar said that the government’s committed to lowering new debt to strengthen the country’s financial position.

He noted that new debt reached RM100 billion in 2021 and 2022 but has been steadily decreasing.

By 2023, it had been reduced to RM93 billion and has further declined to RM86 billion this year.

“Comprehensive efforts and initiatives that cover a broader spectrum, including better governance, rationalisation, avoiding waste, tackling corruption, as well as enforcing laws and taxation,” Anwar said when asked if rationalisation of subsidies is being used to reduce debt.

Economy Minister Rafizi Ramli told the Dewan Rakyat on July 10 that the government is keeping details of the subsidy rationalisation under wraps to prevent traders from exploiting the situation.

On June 10, bulk diesel subsidies were eliminated and replaced with targeted diesel subsidies, leading to price fluctuations in the diesel market.

Complaints against diesel rationalisation persist, even though the government has implemented subsidies for targeted groups.