KUALA LUMPUR, July 15 — The government will not reduce existing subsidies despite being set to bear almost RM40 billion in petroleum product subsidy expenditure this year due to the West Asia conflict, said Deputy Finance Minister Liew Chin Tong.
He said the government’s current stance is to continue various forms of aid including Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA).
He added that BUDI95 has protected the people from rising global oil prices when the crisis in West Asia peaked in March and April.
“With the set price and the quota given, the people are not affected and are not influenced by what is happening in West Asia.
“The people pay RM1.99 (per litre) even though in March and April the actual price reached RM5. These are two important contributions that have been introduced through BUDI95, namely fixed prices during the crisis and the government has ensured that the people have a supply of oil,” he said during an oral question-and-answer session at the Dewan Rakyat today.
He was answering a supplementary question from Mohd Sany Hamzan (Harapan-Hulu Langat) on whether the government intends to reduce other subsidies, including food and STR, SARA or school aid following the large projected subsidy spending for petroleum products this year.
Liew said the government has ensured stable petrol prices and fuel supplies despite global market uncertainties.
“This, I think, is the uniqueness and also the advantage of BUDI95. In Malaysia, we still queue in traffic jams because we have a supply of oil,” he said.
