The Federation of Malaysian Consumer Associations (FOMCA) says that the amount of targeted RON 95 petrol subsidy that will be given by the government to eligible recipients must be sufficient to balance the cost of expenses if it implements the rationalisation of the fuel.

According to the organisation’s CEO Saravanan Thambirajah, the matter needs to be looked into so that it does not have a negative impact on the rakyat and the economy, Sinar Harian reports.

He said that while it is difficult to estimate the amount of petrol subsidy that will be sufficient to cover the difference in cost of RON 95 petrol when it is floated in the future, the government needs to conduct a proper audit through the Pangkalan Data Utama (PADU) socio-economic database.

“The government needs to collect information at the lower level in terms of actual monthly petrol consumption and the needs of eligible people, namely the B40 and M40 groups. The cost of commuting to work, for example, is not cheap because they also have to pay tolls, road tax and vehicle insurance,” he told the news publication.

“Don’t just rely on existing statistics. The government’s reliance on existing statistics before has caused them to forget what the real situation is for the people out there,” he said, adding that there is a fear that various adverse implications could arise if the amount of subsidy is not reasonable.

“People’s purchasing power could fall because the money runs out to cover increasing petrol expenses. Also, the B40 group may not be able to buy nutritious food for their families. In fact, it is not impossible that social problems and crime could increase because people do not have enough wages. The government needs to look into risks like this,” he stated.

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