KUALA LUMPUR, Oct 5 — The government is evaluating options for the RON95 and diesel price support that it reintroduced after coming into power, said Entrepreneur Development Minister Mohd Redzuan Md Yusof.
The Pakatan Harapan government froze pump prices for both types of fuel after coming into power in the general election, but plans to introduce a targeted scheme in place of the current blanket subsidy.
“We are still drafting the fuel subsidy for 2019 Budget. We have still not come to a number (for subsidy),” the minister said at the Beauty Expo 2018 today.
“Whether there will be an increase or decrease (in the fuel subsidy), it is something that we will see (when the Budget is tabled) in the Parliament.”
Mohd Redzuan said the key consideration is how any change will affect the economy.
Finance Minister Lim Guan Eng is due to table Budget 2019 on November 2.
Previous reports suggest it will cost the government around RM3 billion to continue with the price support in 2018.
While RON95 and diesel prices are currently fixed, the higher grade RON97 petrol has risen in tandem with global oil price that has now breached US$74 per barrel.
The Beauty Expo is organised by UBM Asia is expecting to over 380 international and local exhibiting brands in the areas of beauty, hair, nail, makeup and education as well as halal cosmetics.
There are 30 participating countries including Belgium, Japan, South Korea and Thailand.