Govt won't hike RON95 price amid Iran-Israel hostilities: PM

Summary

• Prime Minister Anwar Ibrahim has assured that the government will not increase RON95 petrol prices despite potential sharp rises in global crude oil costs due to Iran-Israel geopolitical tensions.

• He says the government aims to avoid burdening citizens with higher fuel costs.  

Prime Minister Anwar Ibrahim assured that the government will not raise the price of RON95 petrol, even if there is a sharp increase in global crude oil prices due to geopolitical tensions involving Iran and Israel.

He said that although the price increase benefits Petronas, the government aims to avoid burdening the people with higher fuel costs.

“Oil prices fluctuate. It is relatively low. (If) There is a sharp increase, the returns are good for Petronas, but it affects other countries. We are not increasing fuel prices,” Bernama reported him saying, after a meeting with the Johor PKR leadership today.

Fiscal reforms

At the same time, Anwar stressed that fiscal policies, including the expansion of the sales and service tax (SST), must be implemented carefully so as not to pressure the lower- and middle-income groups.

On Jan 9, Finance Minister II Amir Hamzah Azizan said the government would expand the SST beginning July 1 to cover more goods and services.

While a zero percent sales tax on necessities will be maintained, non-essential goods will be taxed between five and 10 percent.

“The government is committed to continuing the reforms under the Madani Economy framework.

“To ensure that the majority of people are not affected by the revision, the government is taking a targeted approach to ensure that basic goods and services are not taxed.

“In addition, various facilities are also being provided to mitigate the impact on micro, small, and medium enterprises,” Amir added.

Apart from the SST expansion, the government is also mulling reviewing the electricity tariff in July, but Anwar insisted it would not affect 85 percent of the population.

The government is also planning to implement subsidy rationalisation for RON95.

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