YESTERDAY (July 22), Prime Minister Datuk Seri Anwar Ibrahim disclosed that there is no plans to roll out targeted subsidies for RON95 petrol for now as the priority is on diesel where the prices at the pump have been floated since June 11.

Anwar’s reluctance to introduce targeted subsidies for RON95 is understandable. Based on the government’s experience with diesel, the public backlash has been rather severe.

So used to pumping diesel at RM2.15/litre, Malaysians were certainly not accustomed to having to pay RM3.35/litre or 56% more for the fuel.

And if we were to extrapolate this to RON95 which involves many times more vehicle owners than diesel, the public fall-out could be much worse.

But the question is, how long more does the Madani government want to play the populist card? Didn’t Anwar announce that soon after diesel prices were floated, his administration would need to take unpopular and painful measures for the sake of the nation’s long-term well-being?

Why dilly-dally when the unity government already has control of two-thirds of the Dewan Rakyat - which makes Anwar’s position unassailable - at least on paper?

In June, Maybank Investment Bank in a report stated that the price of RON95 petrol would need to be increased by 32 sen or 15.6% to RM2.37/litre starting this July 1 to achieve the RM4.1 bil savings needed to meet the RM11.5 bil target outlined in Budget 2024.

We are already into the tail-end of July and the PM who doubles up as the Finance Minister is not even indicating when the targeted subsidies for RON95 will be introduced - if at all.

With national debts at RM1.5 tril, the Madani government can ill-afford to be lax with its finances lest the well-being of future generations of Malaysians will be affected.

Implementing targeted subsidies for RON95 will certainly slash unnecessary wastage considering much of our fuel which is already one of the lowest in the region ends up being smuggled.

As for the political fall-out, Anwar would have time to recover if the implementation of RON95 subsidies removal at the pump is made now compared with later (assuming that the 16^th General Election or GE16 must be held latest by Feb 17, 2028).

Doubtlessly, the earlier the RON95 price hike is rolled out, the more time the unity government has to undertake damage control till the next national polls.

If Anwar despite having a super-majority in Parliament continues to drag his feet on a painful but necessary action, then there is less likelihood for a government with lesser support to push this through - be it the unity government or otherwise.

Based on the diesel experience, the problem is not with floating the fuel price but the targeted subsidy mechanisms. There are still unresolved teething problems such as the BUDI MADANI eligibility and logistics vehicles not getting their fleet cards in time.

All these are due to lack of proper planning in implementation as opposed to removal of subsidies at the pump. This being the case, the Madani government should urgently fine-tune the process for RON95, leading to its implementation.

Removing subsidies for RON95 at the pump is a painful but responsible thing to do. As a responsible government, it must do so immediately. - July 23, 2024

Just Get It Done and Over With
Cheras, Kuala Lumpur 

https://focusmalaysia.my/dear-pmx-wait-no-more-implement-targeted-subsidies-for-ron95-now/