PUTRAJAYA: The decision on whether the subsidy for RON95 would be retained or lifted would only be made when the targeted petrol subsidy is implemented.
Domestic Trade and Consumer Affairs Minister Datuk Seri Saifuddin Nasution Ismail said the matter would be discussed and decided by the cabinet soon.
"We have two options now, as to whether to lift or retain the current ceiling price of RON95 at RM2.08 per litre. I will have to study which is the best option and bring it up at the cabinet for a decision," he said at a media session here today.
The government had previously capped the price of RON95 at RM2.08 and diesel at RM2.18 per litre when the weekly fuel price mechanism was re-introduced.
On when the government's targeted petrol subsidy would be introduced, Saifuddin said the mechanism is on its final stages of being finalised.
"We are currently waiting for the Bantuan Sara Hidup Secretariat to give us the latest updated list of those eligible Bottom40 (B40) recipients and then we will move into implementing the subsidy.
"We are also looking into whether the subsidy should be given in the form of cash or banked in into their respective personal bank accounts," he said.
Upon the targeted subsidy for RON95 being successfully implemented, Saifuddin said the ministry is also looking at providing subsidies of other consumer products such as cooking oil, flour and liquefied petroleum gas (LPG).
"By doing this, the government can achieve big savings and with the savings, we would hopefully be able to extend the subsidy to the Middle40 (M40) group. This is our vision," he added.
It was reported previously that the RON95 mechanism needs to fulfil three key features, namely smooth and user-friendly implementation, equipped with high-security features, and could be used at all petrol stations in urban or rural areas.
The Finance Ministry had also issued a Request for Proposal for the implementation of a new targeted petrol subsidy system.
Saifuddin said the government is also looking at other ways to reduce the high cost of living borne by the people.
"We are also looking at removing the middleman involved in the supply chain before an item reaches consumer to reduce the price of goods
"Other efforts include the introduction of Food Bank Siswa, an extension of the Food Bank Malaysia programme to help university students from the B40 group or poor families," he added.