May 16, 2011 13:28 PM
Value Of Subsidies To Rise To RM20.58 Billion This Year
PUTRAJAYA, May 16 (Bernama) -- The government expects the value of subsidies this year to rise to RM20.58 billion compared to RM10.32 billion in 2010 following the increase in global oil prices.
Deputy Prime Minister Tan Sri Muhyiddin Yassin said of this amount, RM18 billion is just for petroleum products, that is, RON 95, diesel and LPG cooking gas.
"Despite this, from time to time, where it is considered fair, the sector concerned will receive assistance, especially for consumer products such as LPG cooking gas as it is widely used.
"But we cannot maintain the subsidy rate forever. There is a specific stage when deemed fair, the rate will be reduced.
"This means even if the subsidy is needed, it is only for key sectors with policy having been implemented to reduce it in phases," he told reporters after chairing the first meeting of the Cabinet Committee on Supplies and Prices here Monday.
Also present was the Minister of Domestic Trade, Cooperatives and Consumerism Datuk Seri Ismail Sabri Yaakob.
Muhyiddin said the government could not guarantee that there would be no increases in product prices.
"Some of the products will always be controlled, but where the government can reduce from the aspect of the costs burden, this has been entrusted to the committee to look into," he added.
He said the meeting today did not discuss the price of the RON 95 petrol.
Meanwhile, he added that among the key matters decided was that, all ministries and agencies concerned, will study existing policies in ensuring the stability of supplies and product prices in the country
-- BERNAMA
Deputy Prime Minister Tan Sri Muhyiddin Yassin said of this amount, RM18 billion is just for petroleum products, that is, RON 95, diesel and LPG cooking gas.
"Despite this, from time to time, where it is considered fair, the sector concerned will receive assistance, especially for consumer products such as LPG cooking gas as it is widely used.
"But we cannot maintain the subsidy rate forever. There is a specific stage when deemed fair, the rate will be reduced.
"This means even if the subsidy is needed, it is only for key sectors with policy having been implemented to reduce it in phases," he told reporters after chairing the first meeting of the Cabinet Committee on Supplies and Prices here Monday.
Also present was the Minister of Domestic Trade, Cooperatives and Consumerism Datuk Seri Ismail Sabri Yaakob.
Muhyiddin said the government could not guarantee that there would be no increases in product prices.
"Some of the products will always be controlled, but where the government can reduce from the aspect of the costs burden, this has been entrusted to the committee to look into," he added.
He said the meeting today did not discuss the price of the RON 95 petrol.
Meanwhile, he added that among the key matters decided was that, all ministries and agencies concerned, will study existing policies in ensuring the stability of supplies and product prices in the country
-- BERNAMA
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