Petronas backs fuel subsidy reform to support energy transition
KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) has welcomed the rationalisation of petrol subsidies, noting that such subsidies are unsustainable, said Petronas president and group chief executive officer Tan Sri Tengku Muhammad Taufik Tengku Aziz.
He said petrol subsidies are hindering the country's energy transition goals by distorting supply and demand through the misallocation of resources.
'Mechanisms such as price discovery, energy efficiency and subsidy reform are being prioritised as part of the government's broader reform agenda and this sentiment is echoed at the forum, where representatives from various regions agreed that subsidies are not sustainable and do not support energy transition goals,' he said at the Energy Asia 2025 press conference here today.
The press conference was held today in conjunction with the three-day Energy Asia 2025 conference.
On carbon tax, which is slated to be implemented next year, Tengku Muhammad Taufik said the region is clearly moving toward pricing in the externalities.
'There have been ongoing discussions on how to implement carbon pricing and carbon taxes in a more uniform manner.
'One interesting point raised during the discussion was that, once the costs of these externalities become more harmonised, transparent, and liquid, businesses will be better equipped to incorporate carbon pricing and taxation into their feasibility assessments, which would allow for more informed and deliberate economic planning,' he added.
The Energy Asia 2025 conference, themed 'Delivering Asia's Energy Transition', from June 16 to 18, will be an opportune moment for Malaysia and the region to take stock of progress made towards energy transition objectives and reinforce national commitments to achieving net-zero goals.
The conference is timely, coming at a critical juncture in economic diversification and sustainable development, as nations transition from traditional oil to renewable energy and embrace new technologies such as hydrogen and carbon capture.
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