From the 1st September 2014 onwards, our government will limit the sale of subsidized petrol and diesel. Or in other words, only lower income groups will enjoy subsidized gas.
That’s right — the Ministry of Domestic Trade, Cooperatives and Consumerism recently announced that they will be coming up with a whole new system for this. They also added that a similar system is going to be created as well for private vehicles which would be effective on either October or November 2014.
This action is taken to ensure that the government saves more income. It’s estimated that they will save about RM9.8 billion a year when the system is implemented. Back in 2013, Datuk Seri Alias Ahmad (Ministry’s secretary general) said that the Malaysian government has spent about RM24.8 billion in fuel subsidy making it the second largest spending after public wage bill.
At the moment, subsidized RON 95 is priced at RM2.10 per liter and subsidized diesel is priced at RM2.00 per liter.