Adjusting RON95 subsidies will be a last resort

PETALING JAYA: Any move to adjust RON95 petrol subsidies will be a last resort for the government due to its direct impact on household spending, says a senior economic adviser in the Prime Minister’s Office.

Nurhisham Hussein said the government is deferring any decision on the matter for now, despite having multiple policy levers available for adjustment.

“Petrol is a very sensitive issue, and it has a direct impact on people’s pockets,” he said on the latest episode of the Keluar Sekejap podcast.

“So any petrol subsidy adjustment will be pushed back first. That will be among the last options.”

His remarks come after Prime Minister Anwar Ibrahim reportedly said the government was studying a proposal to review RON95 subsidies for high-income earners amid global energy supply pressures.

Nurhisham said the government is instead focused on other cost-saving measures, including tightening diesel quotas under the Subsidised Diesel Control System (SKDS) for the logistics sector.

“When we started SKDS, we gave too much. So now we are actually tightening it based on existing operational data, and there are savings there,” he said.

The government announced a temporary reduction in BUDI95 subsidy eligibility from 300 litres to 200 litres per month on April 1, following the conflict in West Asia.

On fuel supply, Nurhisham said Malaysia’s crude oil and fuel product reserves are sufficient at least until July, citing the country’s strategic advantage in having Petronas and its own refineries.

Beyond fuel, Nurhisham said a special task force is monitoring the country’s food and medicine supply chains weekly, describing the situation as a slow-moving crisis.

“There are about 11% to 15% of medicines at critical levels, meaning remaining supply is less than 60 days. But we have alternative medicines that can be used,” he said.

Supply of essential goods, such as chicken, eggs and rice, remains stable for now, he said, although input costs for the agriculture sector, including imported feed and fertiliser, remain elevated.

المصدر: Free Malaysia Today