The existing RM2.05 and RM2.15 per litre subsidy ceilings for RON95 and diesel, respectively, may be subject to revision and a possible progressive rise later this year.
If there is no gasoline subsidy, as opposed to the present RM2.05 per litre, the actual price of RON95 is anticipated to reach roughly RM3.22 per litre, according to PublicInvest Research analyst Sabrina Edora.
Furthermore, it is estimated that eliminating fuel subsidies for the T20 income category would raise inflation by 0.45 to 0.75 percentage points each year. The government recently indicated that the Pangkalan Data Utama (PADU) system, which will be used to deliver targeted subsidies for RON 95 fuel and diesel next year, will be ready by the end of this year.
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