He said the targeted subsidy programme will take other factors into consideration, but did not go into details into what these would be.
“I can confirm it will not solely use household income levels in the B40, M40 and T20 categories,” he said at an event celebrating National Statistics Day in Putrajaya today, Kosmo reported.
“It’s not to say that if you earn a certain amount, you won’t obtain the subsidy (to purchase RON95 petrol).
“We can’t draw a line based only on household income. We have to consider other variables and not apply a one-size-fits-all approach.
“The economy ministry will conduct simulations and processes with the finance ministry, the statistics department and other relevant departments on this.”
He was responding to a question on whether those in the T15 income group would no longer be eligible for the RON95 subsidy.
This T15 category is a new classification referring to the top 15% of households earning income around RM13,000 or more per month. The amount varies, depending on the state they are residing in.
2-tier pricing system
Bernama reported Rafizi as saying a two-tier pricing system would be introduced in the pricing for RON95.
Under this system, only the top 15% income group, who are not eligible for subsidies, will pay the market price at petrol stations.
Rafizi added that 85% of the population will continue to purchase fuel at subsidised prices.
“The group that will no longer qualify for subsidies is what we refer to as the T15.
“For the remaining 30 million people, the mechanism is being fine-tuned for implementation,” he said.
Tabling the 2025 budget on Friday, Prime Minister Anwar Ibrahim said the government spent RM20 billion last year on blanket subsidies for RON95 petrol.
“The undeniable fact is that foreign nationals and the top 15% group of ultra-rich consumers enjoy 40% (or RM8 billion) of the RON95 petrol subsidy.
“This RM8 billion would be better utilised for improving education, healthcare and public transport facilities,” he said.
“The government will continue to bear the subsidy for 85% of the people, estimated at RM12 billion.”