The rationalisation of diesel fuel subsidy in Peninsular Malaysia that has taken effect today is a burden on Malaysians, said former prime minister and Perikatan Nasional chairman Tan Sri Muhyiddin Yassin in a statement.
The increase in the retail price of diesel fuel by 56%, or RM1.20 to RM3.35 per litre “is very high”, and does not take into account the burden already shouldered by the people through inflation and the high cost of living, said Muhyiddin in his statement.
“The sudden increase will also cause an economic shock and result in a multiplier effect on other economic and social sectors. The cost to the people may be much bigger compared to the RM4bil saved by the government through the rationalisation,” he said, asking if the added cost to the people is worth it.
The Perikatan Nasional chairman also expressed doubt regarding the subsidised diesel control system 2.0 (SKDS 2.0) in its ability to prevent price increases along the supply chain, as SKDS 2.0 only applied to selected types of commercial vehicles.
Strict conditions applied to the Budi Madani targeted subsidy scheme could also see a large number of consumers become ineligible to receive the subsidised diesel, including farmers and small agricultural players who use diesel-powered vehicles to generate local produce, Muhyiddin continued.
For those who qualify and receive the subsidy, the RM200 aid is certainly not sufficient to cover the increased price of diesel, he added.
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, finance minister II Datuk Seri Amir Hamzah Azizan said at the end of last month. Budi Madani was opened for applications on May 28. Today, the finance ministry named the types of diesel vehicles that are not eligible for the Budi Individual targeted subsidy.
The new retail price of the fuel is based on the automatic pricing mechanism (APM) formula for the month of May. Finance minister II added that under the targeted diesel subsidy implementation, the government has set diesel fuel prices for eligible sectors as follows:
- Subsidised Diesel Control System (SKDS) 2.0, which provides fleet cards to eligible logistics vehicles to mitigate the impact of the diesel price on consumer goods prices, is set at RM2.15 per litre.
- Subsidised Diesel Control System (SKDS) 1.0 for land public transport, including school buses, express buses, ambulances and fire engines remains at RM1.88 per litre.
- Subsidised diesel for fishermen is maintained at RM1.65 per litre.
At the above rate, the RM200 aid will cover the first 167 litres of diesel. If you use any more than that per month, your fuel spend goes up. For a typical diesel pick-up truck that does around 10 km/l, that works out to an average mileage of 1,670 km per month before the ‘subsidy’ runs out.
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That’s the problem with earlier government failure to address continuing rising price of energy worldwide. It is just a matter of time we hv to make price adjustments. We need to withdraw subsidy some time in future if not now. The longer we wait the bigger the gap.
Ur Azmin marketed targeted fuel subsidy
Ur Zafrul completed system pilot 2022
So what is your solution?
PH solution was supposed to be as promise above but they have trolled millions of Msians with this act.
I have moved on since PRU-2008. Fast forward 15-16 years today my kid already into college and I also driving an EV already
Quite a big chunk of PH voting M40s have moved on too, into the B40 category when faced with all these inflation, jobless rate, RM dropping, and now removal of subsidy. Lets see if they still dungu vote PH again.
eh why you not in jail?
Agong ady said, if he had to put Muhy in jail then he has to also include Tun M, PMX, DPM, and the rest of Madani into jail as well, and he cannot afford the country not to have a govt. So what to do but to stomach them running around while Pak Najib is unjustly in jail unlike they all.
oh katak nampak peluang , dia keluar.
Even though I don’t like the subisidy removal of diesel and petrol(will be).
Anytime of the day I will choose the pmx government over abah government.
Now I really hope pmx government to do more on assisting poor, sick and the needy one. Especially those old and retired people who needs medical care.
I don’t think PMX government the one to focus on helping the needful people. Based on their constituents, they are mainly middle-to-upper class urban party. Therefore, do not expect them to help out much on the constituents of their political rivals, who mostly made up of the aging, rural populations. Perhaps only the BN seats will be helped.
It is just how politics work. The governing party will pour more effort to the people who vote for them, while the opposition’s seat will be the ‘stepchildren’.
just keep dreaming la about the hope. give me example of which politician in which party or gov is for the people… all these mathafakkers are for themselves and their cronies
How many speeches did aljubor have… about reducing price of fuel and abolishing toll?
An aljubor will always be an aljubor…
i think they need to look into aiding the whole rakyat not only those poor and needy ones. anyone can feel the pinch of rising living cost, or else more and more will run to sinky and aussie.
busybody
No action talk only ex PM.
Adoi, if you so clever, why didn’t you fix the problem the last time? It is a bitter pill but people will have to swallow it to move forward.
Sure maybe your SIL who left the country presumably doing illegal stuff with our money can help out with it and also all those money wasted for Covid & Flood mitigation purpose all goes down the drain it seems to your special contractors to save Malaysia woefully.
migrating to other countries like Australia, UK, US and New Zealand looks tempting. Greener pasture there.
Under BN it is M40 that are forced to migrate for better future. Under PH, even B40 has to migrate in order to survive. Sad to see this is how Msia turn out today thanks to UBAH
PKP. PKPD, PKPB PKPK etc. is a burden to rakyat.
Then why you not mintak Western 1st World dun come out Covid? No Covid, no PKP.
why do individuals with RM100k per annum personal income need RM200/month fuel subsidy?
Bcoz only the rich & powerful T20 will still vote for PH next election so PMX need to take care of them. The B40 will never vote them and M40 dah kena scam for voting PH but they mudah lupa and will continue to get conned to vote PH next election.
Nothing better to do, this Berak King.
Better than Kaki Tipu King PMX
LOL, the original penipi is Moo lah, tipu the previous king amd form bacside govt.