<ul><li>Economists support a two-tier pricing mechanism for the RON 95 petrol targeted subsidy, stating it is better than cash assistance to ensure subsidies reach eligible groups.</li><li>The two-tier pricing model, supported by MyKad or e-wallet verification, streamlines subsidy distribution, benefits only eligible recipients, and minimizes financial leakage to higher-income groups.</li><li>Economist Geoffrey Williams believes tiered pricing is the best approach, with subsidised purchases for small volumes and non-subsidised purchases for large volumes, but disagrees with the use of MyKad or identification methods due to fraud possibilities.</li><li>A tiered pricing system, staggered over multiple levels or introduced slowly, can help handle inflation more effectively and prevent sudden price changes.</li></ul>

RON95 petrol: two-tier pricing better than cash aid, to ensure subsidy reaches eligible groups – economists

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