A two-tiered pricing system is expected to be implemented for RON95 petrol subsidies, says Economy Minister Rafizi Ramli.
However, the specific mechanism for this system will be decided at a later date, as the government is still in discussions with various stakeholders, including the Petrol Dealers Association.
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However, the specific mechanism for this system will be decided at a later date, as the government is still in discussions with various stakeholders, including the Petrol Dealers Association.
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NewsTranscript
00:00Okay baby, about the subsidy and the consideration, you said right now there are two rules in the market
00:05No, no, we have already made a decision, we will use the second rule
00:09The second rule?
00:09What I mentioned earlier is that there are two rules in the current consideration
00:13One rule is that the price is raised to the market price
00:19But families who are eligible to receive subsidies will be given subsidies in the form of monthly cash allowance
00:29The difference is that people get money, but the price is raised
00:35That is one rule
00:36Another rule, there are only two rules in the current discussion
00:41The price raised is only for people who are not eligible to receive subsidies
00:46But the 85% when they go, they will still pay the same price
00:52Only they don't get cash allowance
00:55So it depends, how the government will deal with this?
00:59Do you give them back in the form of cash?
01:01Or do we use it to continue to give subsidies to the 85%?
01:07As the Prime Minister has said, we take the second rule
01:12So the implementation is that the price of oil only needs to be paid at the market price
01:20by people who are not eligible to receive subsidies
01:23That is what is called T15
01:25Who exactly is T15?
01:27We are going through that process now
01:29But for the 85% of other people, if the price is now RM2.50
01:34RM2.50 will be paid
01:36So the mechanics of implementing this
01:40In the past, if we talk about cash payments to the family
01:47That does not involve the pump station
01:49Because the pump station does not have a third pricing
01:53It is only one price for those who go
01:55Only they will get money from the government every month
01:58When we make a decision to make a third pricing
02:02One price for those who are not eligible to receive subsidies
02:08They will have to pay one price
02:11For those eligible, the 85% will pay the price now, RM2.50
02:16And this will involve a third pricing at the pump station
02:21That is why the mechanism needs to be discussed
02:24Of course we know what will be done
02:27But let us go through the process with the pump station first
02:30With all the relevant parties first
02:33So the mechanism is different from diesel?
02:35It is quite different from diesel
02:37Diesel is actually a cash transfer
02:39But diesel also has the same element
02:45Because it has a fleet card
02:49So if we look at an example
02:51It is actually quite similar to how we make diesel
02:55But diesel is easier
02:57Because the group that gets the subsidy
03:00Are only the transport companies, logistics companies
03:03There are not many
03:04So we can give them a fleet card
03:06When they go, they use the fleet card
03:08To pay the price of the subsidy
03:12But for the people
03:14We have 30 million people
03:16We cannot give a fleet card to everyone
03:18So that is what is being discussed
03:20And discussed for implementation
03:22With all the ministries
03:24With the Ministry of Economy and Ministry of Foreign Affairs
03:29And we will discuss with all the other ministries
03:32So it is the same as what the PDM does?
03:35No, no, no
03:37The question is
03:39No, no
03:41Wait a minute
03:43So the concept is
03:45What is it called?
03:47Tiered pricing
03:49So the question was
03:51Is this different from diesel?
03:53I said not all
03:55Because it has the characteristics
03:57The characteristics
03:59Is tiered pricing
04:02So if it is diesel, it is also tiered pricing
04:04But the way to implement this tiered pricing
04:08Is by using a fleet card
04:10Because the companies that are involved are small
04:13But when we do tiered pricing
04:15For petrol
04:17Of course the mechanism
04:19Needs to be different
04:21And needs to be discussed more
04:23Because it involves 30 million people
04:31Thank you