No targeted fuel price scheme for now

The scheme is unnecessary as consumers are currently enjoying the cheap price of fuel and the global oil price is still low


THE Domestic Trade and Consumer Affairs Ministry (KPDNHEP) will not introduce targeted fuel price subsidy in near future as the global oil price is still low.

Minister Datuk Alexander Nanta Linggi (picture) said the scheme is unnecessary as consumers are currently enjoying the cheap price of fuel.

The fuel price of RON95 dropped from RM2.08 on March 6 to the lowest of RM1.25 on April 11, mainly due to the Movement Control Orders (MCOs) implemented to control the spread of the Covid-19 pandemic.

However, as the government had eased the MCOs to allow the economy to restart, the fuel price recovered up to RM1.72 on July 11.

Nanta Linggi assured that without the Petrol Subsidy Programme (PSP) now, KPDNHEP will keep a close watch on any price movement at the global stage and a follow-up action will be made upon the changes.

“We are now monitoring the world price movement. It does not mean that we do not want to implement it.

“We do have plans but as of now, we will continue to use the existing system,” he said in a press conference after launching “Malaysia Sales Campaign” and “Buy Malaysia Campaign 2020” in Kuala Lumpur (KL) yesterday.

“We see that there is no need (to implement the PSP) and at the same time, we will closely monitor the global price, so that we can act accordingly and timely to protect consumer interest.

“We will ensure that they (consumers) will not be adversely affected with any price increase,” Nanta Linggi added.

Last month, Nanta Linggi also said the government has not revoked the order on ceiling retail prices of petrol and diesel, which is set at RM2.08 for RON95, RM2.38 for RON97 and RM2.18 for diesel.

He said the retail pricing of petroleum products using the Automated Price Mechanism formula is still in use and will be influenced by refined products’ prices in line with global crude oil prices.

Separately, Nanta Linggi said the government will continue to encourage the public to purchase more local products through the Malaysia Sales Campaign and Buy Malaysia Campaign 2020.

The campaign and promotions will target both online and offline users.

The ministry has chosen Keretapi Tanah Melayu Bhd (KTMB) to be part of the platform campaign, and will also expand the promotion to other service sectors under KTMB. Through these campaigns, KPDNHEP forecast a total of RM100 billion of receipts in the retail sector.

The minister said the retail sector recorded RM36.9 billion of sales in May, higher than RM28.3 billion recorded in April.

However, he said the figure is far lower than what was recorded in January with RM46.6 billion of sales reported, when the country had not experienced any Covid-19 case or MCOs.

Nanta Linggi said both campaigns will use the allocation of RM20 million given through the short-term National Economic Recovery Plan.

The ministry has also launched a MySales Tracker app to allow the public to get information on sales by businesses. So far, 5,747 corporations have registered for the application.