The decision to rationalise diesel fuel subsidy in Malaysia was due to the cost to the government, which had increased by 10 times in just five years, The Star reported.
The Malaysian government had paid RM14.3 billion in diesel subsidy last year, compared to RM1.4 billion in 2019, and leakages of subsidised diesel was identified as the main culprit for the significant increase in subsidy payments as the amount of subsidised diesel grew from 6.1 billion litres to 10.8 billion litres over the same period.
“One of the reasons to proceed with the subsidy rationalisation is to plug the fiscal holes. The focus now is on subsidy rationalisation so that the government can run effectively. A well-run government helps the people in other forms,” said finance minister II Datuk Seri Amir Hamzah Azizan.
The government hopes to save RM4 billion a year through the rationalisation of diesel subsidy, and savings from the exercise can then be channelled to other areas, according to the report.
The main reason for the leakage of subsidised diesel is the big difference in price of the fuel compared to those in neighbouring countries such as Thailand, Singapore and Indonesia. While the retail price of diesel in Malaysia is capped at RM2.15 per litre, the fuel costs RM4.12 per litre in Thailand, RM4.73 per litre in Indonesia and RM8.87 per litre in Singapore, The Star reported.
Earlier this week, the Malaysian government announced the Budi Madani subsidy assistance programme where successful applicants will receive RM200 a month for their diesel vehicles. The Budi Madani website came online shortly thereafter; here’s how to apply for the subsidy.
Meanwhile, the subsidised diesel control system 2.0 (SKDS 2.0) programme began in March this year, and five petroleum companies issued 90,000 fleet cards to eligible transport firms this week.
The SKDS programme is aimed at the logistics sector or those providing essential services to consumers, while Budi Madani is aimed at private owners of diesel vehicles and agricultural smallholders.The ministry of domestic trade and cost of living (KPDN) stated yesterday that those looking to receive diesel subsidies may apply for Budi Madani or SKDS 2.0, but not both.
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Cost gov what? We are net exporter. In the end, you are still getting money from Petronas.
When PM Najib is back and running the country with a pure BN Gomen with full rakyat support, he will start by lowering the PH cekik darah taxation thru a lower 6% GST to replace 8+10% SST, then direct payments of cash to B40 via BRIM2.0, then inflation will be lower when our RM rises back to RM 2.5 per USD, with a stronger ringgit there will be less reasons for foreign cars to come take our subsidised petrol so there continue to have cheaper petrol for our rakyats, with a stable gomen back on track to high income more investments will flow and this brings more professional jobs for educated rakyats then they no more need to leave the country to work, this helps to bring more prosperity & happiness to all rakyat when everyone has jobs and money in their bank accounts.
We can’t wait for the day to kick out useless PH Gomen & PMX into Klang River which they repolluted after Najib has cleaned it up! Rakyat was truly senang under PM Najib now we regret putting him down.
Kos sara pekerja kerajaan yg berlambak. Dah la pemalas, kuat mengeteh kat kantin sampai kena kencing manis gomen kena tanggung bil potong kaki & bela dorang sampai mati. Memang membazir
kena scam dgn dahmahalni
cancel all subsidies, cancel AP, cut down income tax and etc duties. pls la, dun feed too many govnm pls, before kastam, now miti, somemore abang adik need to be fed.
Bulih balik (insert country of origin). Kalo dah benci sangat tu buatpe duk mesia lagi?
There is no such thing as subsidy, according to his mentri formula it is all paid for with higher global oil prices. They must give what they promised!
Pakatan Rakyat Leader = Pakatan Harapan Leader
Promises of Pakatan Rakyat for RM1.50/L petrol = Promises of Pakatan Harapan
Stop defending and give us cheap fuel that we voted for!
Ya right! Meaning you pass the cost down to rakyat la, Macam Macam alasan .
If not pass UP to the royals meh? Egyptian pharaohs force their slaves to build their tombs. MLM/ponzi uplines make their downlines slog to death so they can makan overriding commission
PH = Ponzi Happening.
Where the hell’s your formula now huh?? Excuses one after another
Root cause: People steal the subsidized diesel from the pump for other purposes.
Solution: Stop the subsidization at pump.
Erm? sound weird enough…
Should enforcement stop smuggling/shipping pump to industrial usage etc?
Enforcement is on the take
u can’t claps with one-sided palm hand, relying solely on enforcement’s alone. there should be a proper law system that’s encourages whistle blowers and informants with monetary and rewards and includes witness-protection program therefore there corruption practices will be drastically minimised.
Not an issue if MYR is not in the gutter.
Then the gov should be ’10-fold’ cari investor also…
PMX busy taking pics with militant leader
Anwar menang rakyat senang
As above.
PH Gomen continue to troll millions of Msians
how about corruption and leakages…these 2 also dont know how many folds increase ….???? anything been done or just for show???
What a bull. Major leakage mainly in Sabah Sarawak areas and yet they maintain subsidies in these region.
No point complaining. Might as well spend your time looking for truck drivers willing to sell you some diesel. 5 litres from each truck will go unnoticed
Yes each my drivers got more subsidy than I need so tepi business jual diesel subsidy bukan salah kann? PM me if you interested to get subsidised with slight markup.
Sir, do consider making east Malaysia your second home . They welcome immigrants from west with open arm.
Time for S&S to break away and take their oil riches away at least until PH gomen downfall then can rejoin. Dun give a single oil sen to useless PH Gomen!
Because government failed to :
1. implement efficient tax collection
2. implement strong enforcement to plug subsidy leaks
3. reform procurement process by continuing to award contracts to friends and family members
Now they’re asking us to foot the bills. How is that convenient?
so much leakage across nothern border and via APMM but no action to stop these leakages!!..
Why?
because all the politicians all getting a cut!!
I can make more profit from selling subsidized diesel with a small mark up to Maha kaya. My trucks don’t even need to be on the road. Saves me maintenance costs and driver wages
Hoi!! Dun move into my business jual subsidised diesel! I came here first! you blah!
‘Kita turunkan harga minyak’ as main marketing tool before GE and now you have all the voters eyeing on your next move.
What subsidy???…we paid already upfront thru the high car taxes! Idiot govt!…this like u tax us twice. If u want to cut the soo called subsidy, abolish the sky high car taxes too!!