The Malaysian Institute of Economic Research (MIER) has proposed in a statement yesterday that RON 95 petrol subsidies be gradually reduced and the savings redirected to diesel subsidies to help businesses, The Edge reports.
“Targeted diesel support can ease cost pressures, particularly for small- and medium-sized enterprises (SME) reliant on logistics and heavy equipment,” the think tank said. It however added that such measures should remain temporary and targeted, given limited fiscal space.
Tricky one, isn’t it? RON 95 petrol is the fuel of the rakyat while diesel is largely the oxygen for businesses. It would be easy to bring up the ‘common man versus conglomerate’ argument, but as we all know, the global fuel crisis has a multiplier effect on supply chain costs – right down to your morning cup of kopi O.
You could argue that the reallocation of subsidies from petrol to diesel is already kind of happening – the Budi Madani RON 95 (Budi95) petrol monthly quota has already been reduced from 300 to 200 litres, while the Budi Diesel monthly cash help has been upped to RM400 from RM300 for April.
Unsubsidised diesel hit an insane RM6.72 a litre last week before easing to RM5.97 this week, while unsubsidised RON 95 reached a RM4.27 zenith last week before going down this week to RM4.02. Since the MyKad system has been such a success for Budi Madani RON 95 (Budi95) petrol, the government wants to replicate it for diesel, which would mean a complete system change from monthly ‘reimbursements’ to MyKad-unlocking ‘gateways’.
Economists, help us – will moving more subsidy spending from diesel to petrol be more effective in helping the rakyat from a macro perspective?
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The only blardy damn problem is our public transport system has poor last mile connectivity.
WE need a car to drive to the nearest LRT station r bus stop.
If our public transport is like Singapore,most of us dont need a car.
So,if u shut or reduce the Ron 95 subsidy..the B40 and mid M40 will need more bantuan.
MIER,u r shifting the problem,not solving the problem.
i want the budi diesel but no b12 or b15, madani should enforce the car manufacturers to commit the cars can support b15 before pushing it to the market. when my car got issue due to using b15, car manufacturer told not their responsibility because they already put a clause recommended b7, madani also said not their fault then we have to bear the repair cost is it, please lah
just curious but how come indonesia cars can use b40 and even b50?
why indonesia can use b40 and even b50 ?
Actually Government should just remove Ron95 subsidy, provide blanket Diesel Subsidy. Why? Coz only end user uses Ron95, majority private cars. Diesel is mostly used in enterprise settings such as manufacturing logistics construction etc which all ties into our daily life cost. Diesel price increase = daily life cost increase. Ron95 no subsidy impact is actually smaller coz got alternative like HEV EV, this will indirectly increase HEV and EV adoption. Government just need to stack on more incentive like what China government did: give rebate to people who purchase EV or HEV, RM10k, RM5k, etc. Give charging station installation company tax breaks, % of investment money by government, greenlight exceptions to certain blocker rules and regulations etc.
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What is not fake is your childish immaturity.