Penang consumer group calls for cut to RON95 petrol subsidies

The rationalisation of RON95 petrol subsidies will result in greater savings for the government and should be the next move after the targeted diesel subsidy, says the Consumers’ Association of Penang.

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Its president, Mr Mohideen Abdul Kader, said vulnerable groups affected by fuel rationalisation policies can be given financial aid to cope with rising costs.

“Fuel subsidies, including diesel, amount to a whopping RM60 billion (S$17.2 billion) annually, which is 1.5 times the amount allocated for healthcare (around RM40 billion) in Budget 2024.

“A modern 1,000-bed hospital costs between RM1.3 billion and RM1.4 billion.

“We could have better-equipped hospitals and vastly improved healthcare with the money from removed subsidies,” he said in a statement on June 12.

Mr Mohideen said the price of Malaysia’s subsidised petrol (RON 95) makes it the cheapest in nine Asean countries.

“The petrol price in Malaysia is 47.44 per cent less than in Indonesia and 54.24 per cent less than in Vietnam.

“Blanket subsidies are not sustainable as they stress the country’s coffers.