RM8 Billion In Fuel Subsidies Went to T20 - Tengku Zafrul

Finance minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz stated that the T20 group has so far enjoyed RM8 billion in fuel subsidies.

It comes as no surprise considering that the blanket fuel subsidy can be enjoyed by all Malaysians, but more so by the top 20% of earners living in the country. To compare, the B40 group is said to have benefited from the fuel subsidy of around RM6 billion.

All the more reason why Tengku Zafrul keeps pushing the point where the blanket subsidies are benefiting the higher income earners more compared to those within the lower income bracket. This is also the reason why the government is pushing for a more targeted fuel subsidy system.

Fuel subsidy system already being tested

According to a written parliamentary reply, Tengku Zafrul stated "The (initial) testing will be followed by more extensive testing. It is expected to take between three and six months before the new system is implemented nationwide."

With fuel subsidies expected to set back the Malaysian government around RM30 billion this year, the right system and timing for the fuel subsidy implementation are crucial not only for those living in different areas, but also to avoid any unwanted inflation and economic downfall.

Once the system has been finalised, the government will most likely introduce the new system in stages. For some of you reading this, be prepared to pay more for that lovely RON 95 petrol in the future. Enjoy that RM2.05/litre while you still can.