PUTRAJAYA: Prime Minister Datuk Seri Najib Tun Razak today announced a 20 sen increase for RON95 petrol and diesel effective midnight tonight.
"This is one of the subsidy rationalisation measures by the government," Najib, who is also Finance Minister, told a press conference after chairing the fiscal policy committee meeting. The meeting is held biannually.
Currently, the government bears a 83 sen subsidy for a litre of RON95 petrol and RM1 for a litre of diesel, he said.
He said the government has allocated a staggering RM24.8 billion for fuel subsidy this year.
"The 20 sen subsidy reduction means the government still provides 63 sen subsidy for a litre of RON95 and 80 sen for a litre of diesel," he said.
To ease the burden of low-income earners and people easily affected by the fuel subsidy rationalisation measure, the government will increase the 1Malaysia People's Aid (BRIM) payment in the 2014 Budget, he said.
The quantum will be announced when the budget is tabled in Parliament on Oct 25, he added.
Many are already heading to the petrol station before the price increase effective midnight tonight.