Targeted fuel subsidy to be implemented in 2024

Talks of targeted fuel subsidy have gone quiet in recent months, but it doesn't mean it has gone away because according to Berita Harian, the government will be implementing targeted fuel subsidy in 2024.

According to their report, the government is expected to implement targeted subsidies, including for RON95 petrol and diesel, starting next year.

This is based on comments made by the Minister of Domestic Trade and Cost of Living, Datuk Seri Salahuddin Ayub, who said that the move would be implemented in stages and starting with diesel subsidies.

He said the decision was reached through discussions at the National Economic Action Council (MTEN) meeting recently.

However, he did not share the mechanisms that would be used to implement the targeted subsidy.

"Several ministries, including the Ministry of Domestic Trade and Cost of Living (KPDN); the Ministry of Economy, the Ministry of Finance (MoF), the Ministry of Transport (MoT) and the Ministry of Investment, Trade and Industry (MITI) are currently preparing an integrated database.

"This integrated database will be used to coordinate related data. All agencies and ministries already have their own databases, we just need to coordinate everything and make sure it is accurate and effective for its implementation later," he said.

Berita Harian also said that last February, Deputy Minister of Finance, Datuk Seri Ahmad Maslan, was reported to have said that the government could save up to RM17 billion if the T20 group did not enjoy subsidies for petrol, diesel and liquefied petroleum gas (LPG).

Ahmad explained that the use of the three fuels in the B40 group was only around 24%, while the M40 was 41% and the T20 group was 35%.