Nambiar, the economist, said it would be “unwieldy” for authorities to issue petrol cards determined by factors like income and house ownership to all vehicle owners and have them produced at the pump.
“A more convenient mechanism would be to charge everyone at an unsubsidised level and to transfer cash rebates in the bank accounts of those who qualify for subsidised petrol,” he said, likening it to the diesel approach.
Lee called on the government to release more details on subsidy eligibility and implementation soon, highlighting that not much time was left until September.
“The data is all there,” he said. “There’s no excuse for them to keep on saying that they are still studying it.”
TEST FOR ANWAR
Fuel subsidies are a politically sensitive issue in Malaysia, with Anwar’s ruling Pakatan Harapan coalition admitting that the diesel subsidy cuts had contributed to its loss in a Penang by-election last July.
In March, Anwar criticised the opposition for playing up the petrol subsidy issue, stressing that it would not affect the majority of the public.
RON95 subsidies cost the government almost RM20 billion a year in 2023 and 2024, the prime minister noted in July.
Given how the entire scheme of Malaysia’s fuel subsidies is “inefficient and not sustainable”, the best option financially would be to abolish it entirely, said Adib Zalkapli of the geopolitical consultancy firm Viewfinder Global Affairs.
“Of course that is politically impossible; Malaysians are addicted to cheap petrol. So in reducing the amount of money needed to keep petrol as cheap as possible to as many people, conditions like property and vehicle ownership must be set,” he said.
“And I think when you have multiple conditions to enjoy the cheaper petrol, loopholes will naturally emerge and they will be exploited.”
https://www.channelnewsasia.com/asia/malaysia-ron95-petrol-subsidy-luxury-vehicle-anwar-5306686
