Extra RM4bil subsidy if no petrol price adjustments

Petrol, diesel, LNG, LPG, NGV, fuel consumption, petrol & diesel price, petrol & diesel subsidy, rebate and etc etc

Extra RM4bil subsidy if no petrol price adjustments

Postby admin » Wed Mar 09, 2011 3:40 pm

KUALA LUMPUR: The fuel subsidy is estimated to rise by an additional RM4bil this year if no adjustments are made to petrol prices, which stand at RM1.90 per litre for RON 95 and RM2.50 per litre for RON 97.

Prime Minister Datuk Seri Najib Tun Razak said at a press conference Wednesday, after a briefing by Bank Negara Governor Tan Sri Dr Zeti Akhtar Aziz, that subsidy costs for fuel would rise by this amount if no adjustments were made in the face of higher crude oil prices.

This would mean that the allocation for fuel subsidy under Budget 2011, which was set at RM10bil based on oil prices hovering around US$85 (RM259) to US$90 (RM274) per barrel, would rise to RM14bil this year.

Besides this, the Government has also allocated RM4bil for other subsidies. For 2010, the fuel subsidy came up to RM10bil.

Economists have also estimated that should oil prices remained above US$100 (RM305), the Government might need to fork out an additional RM3.5bil to RM4bil for the fuel subsidy.

Najib added that the deficit would depend on how much revenue the Government would get against the increase in subsidy costs.

The Government has targeted a budget deficit at 5.4% of gross domestic product for this year compared with 5.6% last year while the target was to lower the deficit to 2.8% by 2015.

The price of RON 97 petrol was last raised on Feb 1, up from an initial 10 sen hike on Jan 4. In December, RON 95 petrol and diesel rose 5 sen per litre to RM1.90 and RM1.85 per litre respectively.

Read the full article:
http://thestar.com.my/news/story.asp?fi ... sec=nation
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Fuel subsidy to rise

Postby admin » Thu Mar 10, 2011 3:24 am

KUALA LUMPUR: The fuel subsidy is estimated to rise by an additional RM4bil this year in the face of higher crude oil prices, said the Prime Minister.

The additional RM4bil pushes up the fuel subsidy under Budget 2011 to RM14bil, compared with the RM10bil estimation last year when oil prices hovered around US$85 to US$90 per barrel.

The increase in fuel subsidy would raise the budget deficit – which the Government has targeted for 5.4% of gross domestic product for this year.

Last year, the figure was 5.6%, while the target was to lower the deficit to 2.8% by 2015.

Datuk Seri Najib Tun Razak said yesterday the deficit for this year would depend on how much revenue the Government would get against the increase in subsidy costs.

Petrol is priced at RM1.90 per litre for RON 95 and RM2.50 per litre for RON 97.

The price of RON 97 petrol was last raised on Feb 1, up from an initial 10sen increase on Jan 4. In December, RON 95 petrol and diesel rose 5sen per litre to RM1.90 and RM1.85 per litre respectively.

Read the full article:
http://thestar.com.my/news/story.asp?fi ... sec=nation
admin
Informer
 
Posts: 3811
Joined: Thu Jan 01, 1970 12:00 am
Location: Kuala Lumpur


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