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Market Price for RON 95, Diesel Expected Next Year As Targeted Subsidy Starts – Ready to Pay RM4 Per Litre?

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Market price for RON 95, diesel expected next year as targeted subsidy starts – ready to pay RM4 per litre?

Malaysian motorists will be paying market price for RON 95 petrol and diesel soon, as there’s a high possibility that targeted subsidies will be implemented next year. This is the view of Maybank Investment Bank, reported by BH.

“We expect higher prices for RON 95 petrol and diesel next year with the revision of fuel subsidy. We understand that the test for the targeted subsidy mechanism started last month and will go on for three to six months. Therefore, we predict that fuel subsidy will be revised again next year as part of the Budget 2023 agenda, which is scheduled for October 7,” Maybank IB said in a research note.

The need for Malaysian to move away from blanket fuel subsidy is clear. The T20 group, which is the top 20% of earners in the country, is enjoying some RM8 billion in fuel subsidies compared to the RM6 billion enjoyed by the bottom 40% (B40). This was revealed by finance minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz in July.

He was repeating what he said in May, that Malaysia’s rich are enjoying the lion’s share of government subsidies. “For every RM1 of fuel subsidy, 53 cents go to the T20, while 15 cents benefit the B40. So, for example if the subsidy bill this year is expected to top RM30 billion, over RM15 billion is subsidy to the T20,” the senator said then.

Why so? The affluent have more cars, their cars consume more fuel and have larger fuel tanks. It’s as simple as that. While the need for targeted subsidy is clear, it’s much harder to find good way to implement a system that will that benefit the intended recipients with minimal leakage, and is universal.

In July, Tengku Zafrul, in a written parliamentary reply, said that a mechanism for targeted subsidy is being tested. “The (initial) testing will be followed by more extensive testing,” he said, adding that the government wants to ensure the feasibility of the mechanism in both urban and rural areas.

“It (testing) is expected to take between three and six months before the new system is implemented nationwide,” he said, adding that the implementation of the targeted fuel subsidy mechanism will be implemented in stages to ensure it does not cause inflation or affect economic growth. Will the government use direct cash handouts via e-wallets?

We’ll have to wait for more details, which might be announced during Budget 2023 next month. By the way, Indonesia is also grappling with the dilemma of fuel subsidies. Having already tripled its original 2022 energy subsidy allocation, the republic is considering raising fuel prices – which are already higher than ours – by 30%.

Are you ready to pay market price for fuel? RON 97 is currently priced at RM4.30 per litre.

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

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Still Less Than 1,000 EV Charging Stations in Malaysia, Infrastructure Development Has to Speed up – MOSTI

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Still less than 1,000 EV charging stations in Malaysia, infrastructure development has to speed up – MOSTI

Since it was announced last October during Budget 2022 that electric vehicles (EVs) would be completely exempt from import and excise duties starting from January 1 this year, there has been a steady stream of EVs making their way into the country.

With these incentives set to run until December 31, 2023 for fully-imported (CBU) EVs and December 31, 2025 for locally-assembled (CKD) EVs, things should move at an even faster pace next year.

However, the public charging infrastructure, integral to the growth of the new format, is struggling to keep up, based on their numbers at least. According to science, technology and innovation (MOSTI) deputy minister Datuk Ahmad Amzad Hashim, the number of public EV charging stations in the country is still low, with less than 1,000 recorded nationwide.

He said that the ministry had targeted to have five times that number in place nationwide this year, but to date, the number of EV charging points is still far below the target, as Bernama reports.

“Our initial target for this year was 5,000 EV charging stations nationwide, but the number is still less than 1,000. Efforts are being done now with the government calling all stakeholders to meet. This will allow us to look into ways to increase the number of charging stations,” he said.

“Our focus is still geared towards major towns, but we have also received requests from other states for charging facilities, which would allow these vehicles to travel from state to state,” he said, adding that the ministry is looking at ways to accelerate the development of the charging infrastructure.

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling – in greater detail – about cars and all their intrinsic peculiarities here.

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DBKL Teliti Beberapa Kawasan Lain Di Sekitar Ibu Kota Sebagai Lokasi Bebas Kenderaan Seperti Jalan TAR

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DBKL teliti beberapa kawasan lain di sekitar ibu kota sebagai lokasi bebas kenderaan seperti Jalan TAR

Susulan kejayaan penutupan Jalan Tuanku Abdul Rahman (Jalan TAR) pada setiap Ahad sejak 28 Ogos lalu, Dewan Bandaraya Kuala Lumpur (DBKL) sedang meneliti beberapa kawasan lain di ibu kota untuk dijadikan sebagai lokasi bebas kenderaan.

Antara lokasi yang dilihat berpotensi untuk mewujudkan kawasan pejalan kaki di tengah bandar adalah di sekitar Bukit Bintang, menurut Timbalan Menteri Wilayah Persekutuan Datuk Seri Jalaluddin Alias.

“Selepas Jalan TAR, kita bercadang untuk melaksanakannya di sekitar Hotel Federal kerana kawasan itu ialah lokasi tumpuan pejalan kaki. Bagaimanapun, kita masih dalam sesi libat urus dengan pihak berkepentingan serta orang awam dan sekiranya berjaya, perkara itu akan diumumkan nanti,” katanya seperti yang dilaporkan Bernama.

Datuk Bandar Kuala Lumpur Datuk Seri Mahadi Che Ngah pula berkata pihaknya menerima maklum balas positif daripada semua pihak termasuk peniaga dan orang awam berhubung penutupan Jalan TAR pada setiap Ahad.

“Oleh itu, kita merancang untuk membawa lebih banyak program dan aktiviti untuk menjadikan tempat itu lebih meriah. Perkara ini bukanlah sesuatu yang mudah untuk dilaksanakan, jadi kita perlu mendapatkan maklum balas orang ramai bagi menyelesaikan sebarang masalah yang mungkin timbul selepas itu,” katanya.

Ledakan adrenalin dan impak maksima. Antara barisan ayat yang paling digemari apabila menggambarkan prestasi sesebuah jentera. Sebelum terlibat di dalam industri auto pada tahun 2011, dia sekadar gemar melihat sport rim tetapi kini lebih suka menerokai kehebatan sesebuah jentera itu.

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Singapore Hikes ERP Toll Rates to Ease Congestion

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Singapore hikes ERP toll rates to ease congestion

Motorists who frequently drive into Singapore, do take note. Rates for electronic road pricing (ERP) in Singapore will increase by SGD$1 (RM3.22) at five expressway locations as a result of traffic build-up at various stretches of expressways in August, the city-state’s land transport authority (LTA).

The increase of rates apply to the ERP gantry on the AYE before Alexandra towards the city centre (8:30am – 9am), the set of three gantries on the AYE after Jurong Town Hall towards the city centre (5:30pm – 6pm), the set of four gantries on the southbound CTE after Braddell Road and the PIE slip road towards the southbound CTE (8:30am – 9am), two gantries on the PIE at Kallang Bahru and the slip road into Bendeemer (8:30am – 9am), and two gantries on the northbound CTE after PIE (7:30pm – 8pm).

The highest rates will be at the southbound CTE gantries, which will charge motorists SGD$4 (RM12.90) at the stipulated time between 8:30am and 9am. Before this, ERP rates were last revised in July, according to Channel News Asia.

Rates for other, previously unannounced ERP gantries and timeslots remain unchanged, according to the Singapore LTA. “With these adjustments, the number of locations and timeslots charged is still significantly lower than the number charged pre-Covid,” it said.

The land transport authority of the city-state said that it will continue to monitor traffic speeds and congestion levels closely, and determine if the electronic road pricing rates need to be adjusted further, according to the report.

Open roads and closed circuits hold great allure for Mick Chan. Driving heaven to him is exercising a playful chassis on twisty paths; prizes ergonomics and involvement over gadgetry. Spent three years at a motoring newspaper and short stint with a magazine prior to joining this website.

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