Fuel subsidies are important and will continue – Mustapa

The government knows that energy subsidies are important to the people and will continue to subsidize four controlled items to help reduce the country’s inflation rate, said Datuk Seri Mustapa Mohammad, Minister (Economy) in the Prime Minister’s Department. The four items are cooking oil, petrol, diesel and liquefied petroleum gas (LPG).

“Our country is now on the brink of an epidemic and the government can still manage the rate despite some pressure following the uncertain inflation rate. This is due to the efforts of the government and the support of the concerned agencies, “said Jelly MP. NST.

“To maintain this, the government will continue to monitor the situation from time to time,” he said. And Europe 7.5%.

Although the rate of inflation continues to rise. “The country’s inflation rate is expected to rise after the Producer Price Index (PPI) rises by 11.6% and global inflationary pressures. In February, the PPI was 9.7%. If the rate goes up, which is normal, it will cause inflation, so the government will keep a close eye on it, “said the experienced minister.

Although the energy subsidy will not be abolished in Malaysia, we should expect a more targeted form of it in the near future as opposed to the current one. More targeted approaches will reduce the country’s subsidy bill as well as reduce the impact for those in need, such as the B40 group, which is not sustainable. Although Malaysia is an oil producing country, the increase in crude price per US $ 1 removes RM410 million from the country’s treasury.

It is no secret that the government is seeking to replace the current blanket style – as has been mentioned before in ‘Targeted’ and Mustapa reiterated this last month.

“Those who can afford it should be paid more and those who do not deserve (subsidy) should not be subsidized at all. Subsidies for poor people, especially for B40 (below 40% income group). It’s time to dump her and move on, “said Tariq al-Hashimi, the party’s secretary general.

He added that energy subsidies have played an important role in controlling inflation in Malaysia and the government has been able to maintain price growth between 2% and 3% for the last 10 to 20 years. “However, it will be a big pressure on the budget. When we outlined our budget last year, the estimate was about RM5 billion in subsidies. It is now estimated at around RM30 billion, representing a sixfold increase in subsidies, ”he said.

Leave a Reply

Your email address will not be published.