Targeted subsidy for diesel to begin next year – KPDN

Targeted subsidy for diesel to begin next year – KPDN

The implementation of a targeted subsidy for diesel is expected to begin in 2024, according to domestic trade and cost of living (KPDN) minister Datuk Seri Salahuddin Ayub.

He said the national economic action council (MTEN) had agreed in a meeting on Wednesday that an integrated database should be prepared to ensure the effectiveness of the implementation, Bernama reports.

The integrated database is expected to combine as much socio-economic information on each household as possible in order to assist the government in honing the subsidies. “All agencies and ministries already have their own databases. We just need to coordinate and make sure they are accurate and effective when it (targeted subsidies for diesel) is implemented,” he said.

Targeted subsidy for diesel to begin next year – KPDN

This follows on the statement made by prime minister Datuk Seri Anwar Ibrahim earlier this week regarding the government’s plan to refine the targeted subsidy for diesel. He said this would also cover diesel vehicles used in the goods transportation sector, and the subsidy would be delivered via a fleet card system.

Anwar said the system would help the government monitor diesel consumption and also prevent leakages. He said that there had been a significant increase in consumption of the fuel over the past three years disproportionate to the number of new registered diesel vehicles, leading the government to question if the fuel was being smuggled.

Back in March, deputy finance minister Datuk Seri Ahmad Maslan had said that Putrajaya’s planned targeted fuel subsidy programme would begin with diesel, with that for RON 95 petrol being introduced at a later date.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • Yes, this should had happened few years earlier. No more bulk subsidy. Period.

    Like or Dislike: Thumb up 15 Thumb down 2
  • Maybe on May 19, 2023 at 12:52 pm

    Next they will implement RM1800 min salary as per quepacs request so the ripple effect within private sector will follow. Then fuel subsidy and all the small2 subsidy will be remove one by one. All will become ‘normal’ again as the increased salary will compensate for the increase of everything. Rich will become richer, poor will become poorer, M40 remain as it is.

    Like or Dislike: Thumb up 14 Thumb down 3
  • Kea Was on May 19, 2023 at 2:03 pm

    With diesel subsidy removed only goods & services increase since work on diesel machine and indirectly drive up everything we use on a daily.

    Smart just to save our beloved car industry.

    Like or Dislike: Thumb up 7 Thumb down 1
  • Janji dicapati on May 19, 2023 at 2:11 pm

    Malaysia Madani for u XP

    Like or Dislike: Thumb up 7 Thumb down 0
  • Germen Perpaduan..is it real ? on May 19, 2023 at 2:20 pm

    So ,the number one question is :How to differentiate a subsidy candidate from a fake or person without any subsidy like Datuk Mydin.
    If each motorist is issued with a special ID fuel subsidy card,it has to be “locked ” into the petrol pump like a credit card,or dont tell us the bangla has to verify one by one inside,at the counter.
    Or better still a retina eye scan.
    Wah..I think those IT lobbyists will be working overtime to get a foolproof computer ID system by next year.
    It will go into billions of RM germen tax ringgit.See,the Madani germen is gonna spend billions of RM to make the system work.

    Like or Dislike: Thumb up 3 Thumb down 0
  • MALAYSIA on May 19, 2023 at 2:32 pm

    SUBSIDIZED DIESEL SHOULD BE STRICTLY MEANT FOR INDUSTRIES LIKE CARGO TRANSPORT.

    Like or Dislike: Thumb up 7 Thumb down 3
    • munkay on May 19, 2023 at 8:05 pm

      agreed but I must add that commercial delivery vehicles of medium and small should also be included, otherwise we’ll start to see delivery charges rise like mad

      Like or Dislike: Thumb up 3 Thumb down 0
  • call me by your name on May 19, 2023 at 4:07 pm

    yes subsidy are not for urban lifestyle vehicle

    Like or Dislike: Thumb up 7 Thumb down 0
  • A car user on May 20, 2023 at 4:44 am

    Subsidy for RON95 should not be based on targeted groups of people.The gap between M40 & T20 can be only RM1 based on the household income ranges set by the gov..Just because a person earns RM1 extra, he has to pay much more for everything as his salary has already exceeded the max. range for M40.Is this fair?In reality, there is no difference at all in terms of household income.Is it fair for a T20 to pay much more for fuel although he is driving a cheap car with small engine compared to an M40 who drives a used big luxury car with big engine?It’s like asking the T20 to pay RM3 for a RM1.50 nasi lemak just because he can afford to pay more.Is this the right thing to do?There is no benefit to the government as it encourages the B40 & M40 to use more subsidised fuel while at the same time the T20 is being bullied into paying much more for the same thing although they use less.The subsidy should be based on consumption, just like electricity regardless of household income.Any person who can afford to drive cars with big engines should also afford to pay more for fuel.Why pamper them with cheaper fuel prices?The unfair price structures will also drive away talents from the country as majority of these people are in T20.No point working extra hard just to earn a bit more but have to pay much more for a T20 to live like an M40. The government should not forget that those T20 people are already paying higher income taxes and majority of them are only categorised as middle class and not rich people.It is better to increase the income tax for the top T5 people instead.

    Like or Dislike: Thumb up 6 Thumb down 1
    • Captain on May 20, 2023 at 11:49 am

      You should check, the number of M40 who could afford to drive and maintain beyond 2.5cc is close to non existence, unless they have a T20 family. While I’m not, but I have a T20 grandfather so I know well my limit and his financial freedom. Most T20 easily daily their 3.0cc(and above) to office everyday through traffic jams around city centre. There was even a news report about how the T20 reap the most benefit when this issue was brought up in the past.

      Like or Dislike: Thumb up 2 Thumb down 2
    • bizikot on May 21, 2023 at 10:54 am

      There is also the question of whether there will be those in the B40 & M40 groups who would quietly buy petrol at the subsidized price for their T20 bosses when given ‘some incentives’…

      Like or Dislike: Thumb up 0 Thumb down 0
  • RON95 on May 20, 2023 at 3:55 pm

    T20 wouldnt care lol, already spent 2k a month on fuel, wouldnt mind to spend another 1k

    Like or Dislike: Thumb up 2 Thumb down 1
  • Janji dicapati on May 20, 2023 at 6:57 pm

    Refer my name

    Like or Dislike: Thumb up 3 Thumb down 0
  • Laugh on May 23, 2023 at 9:47 am

    When will the Gomen remove the subsidy?

    I have been waiting so long to buy my brand new S Class for myself, a beemer for my wife and an Alphard for weekend rides.

    With this removal of subsidy, I can openly increase prices of everything I sell and gain higher profit.
    Not the first time this has happened.
    Then never drop price even when the cost drops.

    Thank you.

    Like or Dislike: Thumb up 1 Thumb down 0
 

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