Effective yesterday (30 September), eligible Malaysians were able to enjoy the 6 sen reduction in RON95 fuel at the price of RM1.99 per litre under the BUDI MADANI RON95 (BUDI95) programme, while foreigners are expected to pay the unsubsidised price of RM2.60 per litre.
The unsubsidised price, however, will not remain the same for long, according to the Finance Minister II, Datuk Seri Amir Hamzah Azizan, and Malaysians can expect to see a change in its price in just a month.
For illustration purposes only
After October, the price of unsubsidised petrol will change weekly
The price will be determined using the Automatic Price Mechanism (APM), similar to the previous implementation of diesel prices.
Amir explained that the current RM2.60 price will be maintained for a month to give consumers time to adjust, and the changes depend on the market price of RON95.
“If the market prices go up, it will go up. If they go down, we will also lower the price.”
He stressed that the approach taken by the government was to ensure that the people enjoyed fairer and more transparent prices, in line with international market movements, according to Berita Harian.
RM11 billion allocated for BUDI95
Regarding the implementation of BUDI95 so far, Amir Hamzah said that the RON95 petrol subsidy system, which is specifically targeted at Malaysians, is running smoothly.
To protect the well-being of the people, the MADANI Government will allocate around RM11 billion to cover the difference between the subsidised price of RM1.99 per litre and the non-subsidised pump price, which is around RM2.60 per litre.
With the abolition of bulk subsidies, the MADANI Government projects that BUDI95 will generate savings of up to RM4 billion per year.
The savings will be used to expand targeted assistance that directly benefits the people, including STR and Basic Rahmah Contribution (SARA).
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This post first appeared on WORLD OF BUZZ.
