KUALA LUMPUR – In an about-turn, the government will no longer go ahead with its initial plan to increase the electricity tariff for domestic users.
Prime Minister Datuk Seri Ismail Sabri Yaakob also said the prices of chicken will be capped despite an earlier announcement that its ceiling prices would be lifted by July 1.
The new ceiling price for chicken will be announced in the near future.
He said this in a statement today amid growing concerns over the removal of subsidies on a number of essential goods, as well as an electricity surcharge initially scheduled for implementation next month.
“At the same time, the government has decided that the prices of chicken in the market will not be floated,” he said, adding that further details will be furnished by Agriculture and Food Industries Minister Datuk Seri Ronald Kiandee soon.
Ismail Sabri said the decision to maintain the electricity as well as water tariffs is despite the spiralling fuel prices and other generation costs.
He added that this latest decision, which will cost the government RM5.8 billion in subsidies, proves its concern in ensuring Keluarga Malaysia will not be further burdened by the rising cost of living.
Earlier today, media editors were invited to a briefing at the Energy and Natural Resources Ministry, believed to be related to shelving of the proposed tariff increase, although the meeting was later called off.
No reason was given for the briefing cancellation.
However, the prime minister made no mention if Sabah and Sarawak intends to follow Putrajaya’s footsteps in maintaining the electricity and water tariffs.
On June 15, The Vibes had quoted a source as confirming that the federal government plans to impose a surcharge on electricity bills belonging to domestic consumers starting next month due to rising fuel prices.
Tenaga Nasional Bhd (TNB) was said to be experiencing difficulty in keeping rates at the current level, especially under the weight of rising coal prices.
It was understood that the proposal for a revised tariff was also raised in the cabinet on the same day, tabled by Energy and Natural Resources Minister Datuk Seri Takiyuddin Hassan.
If it had been approved, the hike would have affected TNB’s domestic consumer base with monthly bills of above RM77.
This accounts to some 30% of household consumers, equivalent to 2.37 million TNB account holders.
The remaining domestic consumer base of 7.9 million, which constitutes the other 70%, would have been spared from the surcharge.
Separately, Domestic Trade and Consumer Affairs Minister Datuk Seri Alexander Nanta Linggi had announced on Tuesday that the government will no longer impose a ceiling price control on poultries, as well chicken eggs, effective July 1.
Under the current ceiling price, poultry is capped at RM8.90/kg for Standard Round Chicken and RM9.90/kg for Super Round Chicken in Peninsular Malaysia.
Subsidies on bottled cooking palm oil products will also cease at the end of this month. – The Vibes, June 24, 2022
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