Fuel Subsidy Program Postponed, Fuel Prices to Follow Current System

Pics for story on petrol price. Azman Ghani / The Star
  • The roll out of the government’s Fuel Subsidy Program will be postponed.

  • It was planned to begin on 1st January 2020.

  • Fuel prices will be calculated as per status quo.

The roll out of the government’s Fuel Subsidy Program will be postponed.

The announcement was made just 2 days away from the proposed start date of 1st January 2020. The government had earlier announced the program on 7th October 2019.

In the press release issued by the Minister of Domestic Trade and Consumer Affairs, Datuk Seri Saifuddin Nasution Bin Ismail, stated that the ministry requires more room to implement a number of steps before launching the program.

  1. Explanatory sessions to provide more information regarding the program, so that the Rakyat may understand it better.
  2. Extra time for those in the B40 category to complete their registration.

The decision to put the program on hold was reached during a Cabinet meeting on 18th December 2019. The minister says that the postponement is “indefinite” and a new launch date will be announced later.

In view of this, fuel prices will be determined via the current system through the new year.

The program was intended to assist the B40 group with petrol costs, while fuel prices will follow market rates for those outside the group. That also means that petrol prices will increase over time.



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