KUALA LUMPUR: The government will not reduce any existing subsidies to the people despite being projected to bear almost RM40 billion in petroleum product subsidies this year due to the conflict in West Asia.
Deputy Finance Minister, Liew Chin Tong, said the government’s current stance is to continue various forms of assistance, including Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA).
He said the implementation of BUDI MADANI RON95 (BUDI95) since September last year had successfully protected the people from the effects of the increase in world oil prices when the crisis in West Asia peaked in March and April.
“With the set price and the quota given, the people are not affected and are not influenced by what is happening in West Asia.
“The people pay RM1.99 (per litre) even though in March and April the actual price reached RM5. These are two important contributions that have been introduced through BUDI95, namely fixed prices during the crisis and the government has ensured that the people have a supply of oil,” he said during an oral question and answer session at the Dewan Rakyat today.
He was answering a supplementary question from Mohd Sany Hamzan (PH-Hulu Langat) on whether the government intends to reduce other subsidies, including food and STR, SARA assistance or school assistance following the projected large subsidy on petroleum products this year.
Liew said the government has ensured stability in petrol prices and fuel supply despite facing global market uncertainties.
“This, I think, is the uniqueness and also the advantage of BUDI95. In Malaysia, we still queue in traffic jams because we have a supply of oil,” he said. – BERNAMA
