news Why Targeted Fuel Subsidy? Here's A Different Perspective On Malaysia's Oil & Gas Industry Cover image via Engin Akyurt & Anoop VS Follow us on Instagram, TikTok, and WhatsApp for the latest stories and breaking news.
To illustrate how crucial the role of oil and gas is in driving economic growth, just look to New Zealand, which this year announced plans to lift its 2018 ban on offshore petroleum exploration. For Malaysia, the tax revenue derived from oil and gas is used by the government in various projects, from education and healthcare to infrastructure and social projects.
"Collaboration with Singapore, a global leader in meeting environmental, social, and governance requirements, can also help develop an environmentally friendly petrochemical cluster and green economy," he said. However, with rising inflation and the increasing cost of subsidies – from RM1.4 billion in 2019 to RM14.3 billion in 2023 – the government is now rethinking this approach.
Malaysia has begun to follow suit, removing diesel subsidies for private vehicle owners as of 10 June 2024. This change saw prices jump from RM2.15 to RM3.35 per litreImage via Tom Fisk The Consumers Association of Penang , for instance, has voiced the need for subsidies to benefit only those who truly need them, rather than being distributed across the board.
While no one loves higher fuel prices, the silver lining here is that these savings will go towards making our everyday lives better in other waysCheck out these trending stories on SAYS: