**Rafizi's Proposal: Two-Tiered RON95 Petrol System**

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Post on Oct 21, 2024

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Rafizi's Two-Tiered RON95 System: A Game-Changer for Malaysians?

Rafizi Ramli, the PKR deputy president, has thrown a real curveball with his proposal for a two-tiered RON95 petrol system. He believes this is the way forward for Malaysia, but is it truly a game-changer? Let's break down the proposal and see if it holds water.

The Current Situation: Subsidies and the Price of Fuel

We all know the pain of rising fuel prices, and it's been a major headache for the government. They've been trying to manage this issue with subsidies, but it's been a tough balancing act. The current system, where RON95 petrol is heavily subsidized, helps keep prices down for everyone. But this has led to a massive drain on government funds, and some argue it's unsustainable.

Rafizi's Solution: A Two-Tiered System

Rafizi's idea is to split the RON95 market into two tiers:

• Tier 1: Subsidized RON95: This would be available to low-income earners, who need it most. To qualify, you'd need to meet certain criteria, like having a specific income level or being registered with the Bantuan Keluarga Malaysia (BKM) program.
• Tier 2: Market-priced RON95: This would be for everyone else. Essentially, the government would remove subsidies for those who don't require them, leading to a higher price at the pump.

The Pros and Cons: A Balanced Look

Pros:

• More targeted help: The subsidized RON95 would go directly to those who need it most, making it more efficient.
• Reduced government spending: The government could save a significant amount of money on fuel subsidies.
• Market-driven pricing: This could encourage people to be more mindful of their fuel consumption, leading to a reduction in overall demand.

Cons:

• Increased cost for some: Those who don't qualify for subsidized RON95 will see a hike in their petrol expenses.
• Administrative challenges: Implementing and enforcing a two-tiered system could be challenging, requiring robust verification systems.
• Potential for abuse: There's always a chance of individuals abusing the system to get subsidized fuel, leading to unintended consequences.

The Big Question: Is This a Viable Solution?

Rafizi's proposal is a bold move, but it comes with its fair share of risks and potential challenges. The idea of a more targeted approach to subsidies is appealing, but the implementation will be key. If done right, it could be a real game-changer, but if not, it could lead to further hardship for some Malaysians. Only time will tell if Rafizi's plan will be a success.