Scrap fuel subsidy quotas, Onn Hafiz urges govt

PETALING JAYA: Johor menteri besar Onn Hafiz Ghazi has urged the federal government to scrap the monthly quotas for fuel subsidies, particularly for RON95 petrol and diesel.

The state Barisan Nasional chief said the most common complaints raised by Johoreans on the campaign trail were fuel prices and the rising cost of living, Oriental Daily reported.

He said many of them found the 200-litre quota for RON95 insufficient while the diesel quota for businesses had led to higher operating costs.

“As a result, businesses pass the additional costs on to consumers, meaning the public is hit twice.

“First, their own fuel subsidy is insufficient. Second, they end up paying higher prices because businesses transfer the increased costs to consumers,” the state Umno chief was quoted as saying.

Onn Hafiz questioned the need to continue limiting subsidised fuel purchases, saying crude oil prices “have already stabilised”.

“I believe we need to stop these restrictions,” he added.

Crude oil prices started moderating with the resumption of shipments through the Strait of Hormuz, after surging past US$120 a barrel at the height of the Iran war.

However, the finance ministry said last week that the global petroleum market had yet to fully stabilise, and that risks remained without a decisive resolution to the conflict.