Government does not intend to lower RON95, maximum subsidized prices for diesel: MOF

KUALA LUMPUR: The government has no intention of lowering current peak prices for RON95 petrol and subsidized diesel, the Ministry of Finance (MoF) said.

In a written response published on Parliament’s website, the MoF said this was to prevent the government from continuing to bear higher subsidy amounts.

“In order to continue protecting consumers from the impact of the rise in crude oil in the world market, the government is maintaining the maximum prices for RON95 gasoline and subsidized diesel until now, although the real market prices have exceeded the set maximum prices,” the ministry said.

The Ministry answered a question from Datuk Dr. Nik Muhammad Zawawi Salleh (PAS-Pasir Puteh) on the government’s plans regarding the restructuring of petrol subsidies.

However, the ministry said the government is considering measures to improve the delivery of subsidies in a more targeted manner to reduce leakage and balance subsidy responsibility with the need to continue safeguarding people’s well-being and well-being.

It added that subsidy savings could also be used to optimize spending on programs and projects that add value to the economy. –Bernama