In an interview with Bloomberg on Tuesday, Economy Minister Rafizi Ramli reaffirmed the government’s decision to cut fuel subsidies this year as part of efforts to reduce the national fiscal deficit.
As reported by The Star, Rafizi emphasised the necessity of implementing the subsidy cuts to “manage the sequence” effectively, particularly in light of looming inflation risks. The move aligns with the government’s targeted RON95 subsidy programme planned for the second half of 2024, aimed at optimising resources for those most in need.
Highlighting concerns over the distribution of blanket fuel subsidies, Rafizi noted that the top 20 (T20) income group currently receives 53% of these subsidies. He stressed that such blanket subsidies, particularly on RON95 fuel, have accounted for a significant portion of the total RM81 billion in subsidies disbursed in 2023.
The government aims to narrow the budget deficit to 4.3% of gross domestic product (GDP) this year, compared to 5% in 2023. Rafizi emphasised the importance of adhering to a certain timeline to achieve this fiscal target.
Sebuah video yang memperlihatkan seorang wanita mengisi minyak subsidi untuk kereta yang ada nombor plat Thailand di sebuah stesen minyak di Rawang, Selangor, telah menimbulkan rasa kekecewaan di kalangan netizen. Video itu tidak hanya menunjukkan tindakan berani tersebut tetapi juga menimbulkan kontroversi kerana seorang pekerja stesen kelihatan membantu dalam proses tersebut.
Dalam rakaman itu, seorang lelaki berdiri di hadapan wanita itu, memegang nosel minyak, sementara orang lain, nampaknya seorang pekerja stesen, bersandar pada bonet kereta—amalan biasa untuk memudahkan proses pengisian minyak. Netizen meluahkan kemarahan mereka bukan sahaja terhadap tindakan wanita itu tetapi juga mempersoalkan mengapa pekerja stesen membenarkan penggunaan minyak subsidi untuk kenderaan berplat luar negara.
Pemilik video, yang meluahkan rasa tidak percaya, mengulas tentang ketidakpercayaan menggunakan minyak subsidi yang sepatutnya untuk rakyat Malaysia dan mempersoalkan pekerja stesen yang membantu dalam tindakan itu.
Beberapa netizen menuntut tindakan balas, mencadangkan bahawa pemilik stesen minyak boleh dikenakan denda dalam situasi sedemikian. Keberimbangan tentang keperluan majikan untuk mendidik kakitangan mereka, sama ada tempatan atau asing, tentang peraturan yang mengawal penggunaan minyak RON95 subsidi timbul.
Kementerian Perdagangan Dalam Negeri dan Hal Ehwal Pengguna Selangor mengetahui mengenai insiden itu dan berjanji untuk menjalankan penyiasatan menyeluruh setelah aduan atau maklumat diterima. Insiden ini menekankan kepentingan menguatkuasakan peraturan dan mengekalkan integriti program subsidi minyak.
A video showinga woman filling her Thai-registered car with subsidised fuel at a petrol station in Rawang, Selangor, has ignited frustration among netizens. The video not only highlighted the audacious act but also raised eyebrows as a petrol station employee was seen assisting in the process.
In the footage, a man stood in front of the woman, holding the fuel nozzle, while another person, seemingly a station worker, pressed on the car’s boot—a common practice to facilitate the fuelling process. Netizens expressed their anger not only towards the woman’s actions but also questioned why the station employee allowed the use of subsidised fuel for a foreign-registered vehicle.
The video owner, expressing disbelief, remarked on the audacity of stealing subsidised fuel meant for Malaysian citizens and questioned the station employees for assisting in the act.
The existing RM2.05 and RM2.15 per litre subsidy ceilings for RON95 and diesel, respectively, may be subject to revision and a possible progressive rise later this year.
If there is no gasoline subsidy, as opposed to the present RM2.05 per litre, the actual price of RON95 is anticipated to reach roughly RM3.22 per litre, according to PublicInvest Research analyst Sabrina Edora.
Furthermore, it is estimated that eliminating fuel subsidies for the T20 income category would raise inflation by 0.45 to 0.75 percentage points each year. The government recently indicated that the Pangkalan Data Utama (PADU) system, which will be used to deliver targeted subsidies for RON 95 fuel and diesel next year, will be ready by the end of this year.
A petrol station operator was fined RM40,000 after he admitted that he allowed a vehicle with a foreign registration number plate to fuel up on RON95 petrol four years ago.
With global crude oil prices having been fairly stable over the past month (and economists are forecasting that this will continue in 2023), fuel prices have likewise been stable. The Automatic Pricing Mechanism used by the Finance Ministry determines retail prices based on various factors and for the coming 7 days, no change is needed for RON97 petrol. It also probably means that the subsidies for RON95 petrol and biodiesel can be less to maintain them at capped levels.
Even though our petrol prices (except for RON97) are controlled and lower than neighbouring countries, it’s good to try to use less as fossil fuels will eventually be finished on the planet. Here are some ways to reduce the fuel consumption in your vehicle:
Don’t carry unnecessary weight: The less weight your car has to move, the less hard the engine has to work. So whatever you do not need to keep in the boot should be taken out. This includes those golfbags and camping gear.
Plan trips: If you have different places to go on a single journey, spend a few minutes to think about the route so that you avoid congested areas. You may have to travel a few extra kilometres using a less congested route but you will actually use less fuel because the car won’t be stuck in a jam burning fuel going nowhere. Plus you will probably be less stressed out when you reach your destination.
Right tyre pressures: Under-inflated tyres will cause more rolling resistance (not to mention faster wear) which will worsen fuel consumption. Be sure they are inflated to the minimum recommended by the manufacturer and a bit more might also be better.
Service the engine regularly: Engine parts wear out or get dirty over time and reduce the operating efficiency of the engine. Regular servicing ensures that adjustments are set correctly and periodically, parts like filters or sparkplugs need to be replaced.
Switch off the engine more: Many motorists do not fully realize that the engine is burning fuel every second it is running. They will keep the engine running for long periods while waiting for someone to buy things or waiting for their children to come out from school. This is very wasteful and running the air-conditioner at the same time wastes more fuel. Switch off the engine when you are going to be stationary for more than 5 minutes and you’ll find your fuel consumption improving.
Slow and steady: You don’t have to drive at a crawl to save fuel but if you just drive more frequently at 80/90 km/h instead of 100/110 km/h, you could save 10 to 15% in fuel. Keeping a steady speed rather than ‘pumping‘ the pedal will also save on fuel. On the highway, you can use cruise control, if available.
The price of RON97 petrol continues to remain unchanged, while the other fuel grades – RON95 petrol and biodiesel – are subsidized and maintained at their levels.
For the final week of 2022, prices of all fuel grades remain unchanged from last week. The government says that they are formulating a scheme of targeted subsidies which could use engine size as a basis although that won’t work well today with even expensive models having engines as small as 1.5 litres. Some other criteria would need to be applied in this case.
Regardless of whether fuel consumption matters to you, it’s good to try to use less of it as fossil fuels will eventually be finished on the planet. Here are some ways to reduce the fuel consumption in your vehicle:
Right tyre pressures: Under-inflated tyres will cause more rolling resistance (not to mention faster wear) which will worsen fuel consumption. Be sure they are inflated to the minimum recommended by the manufacturer and a bit more might also be better.
Don’t carry unnecessary weight: The less weight your car has to move, the less hard the engine has to work. So whatever you do not need to keep in the boot should be taken out. This includes those golfbags and camping gear.
Plan trips: If you have different places to go on a single journey, spend a few minutes to think about the route so that you avoid congested areas. You may have to travel a few extra kilometres using a less congested route but you will actually use less fuel because the car won’t be stuck in a jam burning fuel going nowhere. Plus you will probably be less stressed out when you reach your destination.
Slow and steady: You don’t have to drive at a crawl to save fuel but if you just drive more frequently at 80/90 km/h instead of 100/110 km/h, you could save 10 to 15% in fuel. Keeping a steady speed rather than ‘pumping‘ the pedal will also save on fuel. On the highway, you can use cruise control, if available.
Service the engine regularly: Engine parts wear out or get dirty over time and reduce the operating efficiency of the engine. Regular servicing ensures that adjustments are set correctly and periodically, parts like filters or sparkplugs need to be replaced.
Switch off the engine more: Many motorists do not fully realize that the engine is burning fuel every second it is running. They will keep the engine running for long periods while waiting for someone to buy things or waiting for their children to come out from school. This is very wasteful and running the air-conditioner at the same time wastes more fuel. Switch off the engine when you are going to be stationary for more than 5 minutes and you’ll find your fuel consumption improving.
RON97 petrol falls another 10 sen cheaper per litre to RM3.85, based as usual on the Automatic Pricing Mechanism (APM) which determines the retail price for unsubsidized fuel in Malaysia. RON95 petrol and biodiesel continue to be subsidized to maintain their prices and the new government says that while there is a need for subsidies to be targeted, it is a complex process to ensure that it will benefit those who really need assistance.
Perhaps it’s a coincidence but with the new government now confirmed, the first update of fuel prices has RON97 petrol becoming 10 sen cheaper per litre. This would still be based on the Automatic Pricing Mechanism (APM) which determines the retail price for unsubsidized fuel in Malaysia. RON95 petrol and biodiesel are currently subsidized to maintain their prices but the government may soon review the subsidies to have a more targeted approach that benefits those who really need assistance.
