BALIK PULAU: Malaysia will still have among the cheapest petrol prices in the world when the RON95 petrol subsidy rationalisation starts on Sept 30, says Datuk Seri Amir Hamzah Azizan.
The Finance Minister II said even when the RON95 price is raised when the rationalisation begins, the price of petrol in the country will still be among the cheapest in the world.
‘If we look at the price of RM1.99 per litre for Malaysians, we are actually among the cheapest in the world.
“We can see that we are still among the cheapest in the region and globally,” he said in a press conference during the engagement session of Kampung Angkat Madani at Pulau Betong here on Monday (Sept 22).
Amir Hamzah, however, said it would be best to wait until Sept 30, when the actual market price is announced, as it will depend on global oil prices.
He said petrol prices would remain low if global prices decline, as the subsidised rate is already among the cheapest.
Amir Hamzah, who is also serving as the Economy Minister, said with the RON95 petrol subsidy rationalisation, the government could save billions of ringgit.
He said with oil prices expected at around US$75 per barrel, the government could save between RM2.5bil and RM4bil annually.
He said the government hopes that with the adjustment of RON95 subsidies, the government can achieve some savings particularly by cutting off subsidies previously enjoyed by those not eligible, including cases where subsidised fuel in Malaysia was sold abroad.
He said the savings gained from the subsidy adjustment will be channelled back into what subsidies were originally intended for, such as strengthening the Sumbangan Tunai Rahmah (STR), the SARA initiative, and development works including upgrades for dilapidated clinics and schools.
