Fuel subsidy plan and its impact on inflation

Quick Summary:

The proposed subsidy rationalisation programme for fuel will help government finances, but concerns remain about its inflationary impact.

The programme will start with diesel fuel, which will be rationalised in Peninsular Malaysia first and is estimated to save RM4bil annually or 0.2% of the gross domestic product (GDP).

A controlled increase in the price of the petrol will ensure inflation does not spike, while a free float to market rates could lead to a spike in inflation in the economy, analysts said.

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Article Details

Category: EconomyBusiness

Markets: Malaysia

Topics: Governmentdebt /Business/Business News Inflation Fuelsubsidy Diesel Consumerpriceindex Economy RON95 Fiscalresponsibility

Source Website Secure: Yes (HTTPS)

News Sentiment: Negative

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-05-24 @ 00:00:00 (1 months ago)

News Timezone: GMT +8:00

News Source URL: thestar.com.my

Language: English

Article Length: 590 words

Reading Time: 4 minutes read

Sentences: 16 lines

Sentence Length: 37 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © The Star

News ID: 21069568

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About The Star

Main Topics: EconomyBusiness

Official Website: thestar.com.my

Update Frequency: 46 posts per day

Year Established: 1971

Headquarters: Malaysia

News Last Updated: 46 minutes ago

Coverage Areas: Malaysia

Ownership: Independent Company

Publication Timezone: GMT +8:00

Content Availability: Local / Regional

News Language: English

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Publisher ID: #22

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