Prime minister Datuk Seri Anwar Ibrahim has revealed the government still bears around RM7 billion in subsidies related to diesel in Peninsular Malaysia despite the fuel subsidy rationalisation programme coming into effect on June 10 this year.
As reported by Bernama, Anwar said subsidies have not been abolished and that the programme serves to better manage subsidies, prevent misuse and ensure subsidies reach appropriate groups.
“The main goal of the diesel subsidy rationalisation policy is to ensure that subsidy wastage no longer continues while ensuring that the savings are returned to the wider population,” he said. Savings from the implementation of targeted subsidies would be used to improve education, health, public transportation and other sectors that benefit the public.
According to another report by Reuters, prior to the programme being implemented, Malaysia’s diesel subsidy bill has risen by 10 times from RM1.4 billion in 2019 to RM14.3 billion in 2023.
Another purpose of the programme is to counter diesel smuggling, with the prime minister saying a total of 6.44 million litres of diesel, which is estimated to worth RM14.12 million, have been seized as of December 31, 2023 following the launch of Ops Tiris on March 1, 2023 by the ministry of domestic trade and costs of living (KPDN).
The price of Euro 5 B10 and B20 diesel is currently at RM3.35 per litre following the automatic pricing mechanism (APM) formula. Subsidies (that the government is paying for) are still provided for eligible sectors, including fisherman and those that qualify for the Subsidised Diesel Control System (SKDS).
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need not bear the burden, just immediately hapuskan AP, lower import tax and cut off excise duties, everyone will remain silents.
ya, sabah sarawak still enjoying the subsidy. This is Malaysia.
The problem is, even those property developers who never before enjoy fuel subsidies now claimed their cost increased. Also other businesses that see an opportunity to increase their profit margins. How would government able to prevent such unethical acts for long term? I am sure no solution at all.
Pusing cerita lagi! What else is new with all government ways of working? Cost of living has been increasing like your blood pressure not coming down at all. Sugar prices if increased by RM1 per packet, coffee shops raise drink prices by 10 to 20 sen. Now diesel increase more than 50%,businesses hv more reasons to simply raise price. What we lack is logical and sensible analysis, say for example, for a manufactured good, sugar consist how many percent in the whole raw ingredients component? And transportation cost with diesel increased by 50% is how many percentage to the whole costing of the product? If all sensibly compute out and be very transparent, the increase overall might not be that significant but we, the end consumers have to suffer. What is rubbing salt to the wound is the attitude of government agencies. Look at KPDN, have they really thoroughly check prices? Look at what PM statement. All these are adding sensation that price increases are inevitable but if they really professionally carry out their job, all unjustifiable price increases can be curbed from day one, instead of letting it become a norm. Do the cost breakdown accurately and educate all businesses, small and big. Not adding comments to somehow indicate indirectly price increase is inevitable! Government pls do your job professionally!
So this diesel subsidy removal is much ado about nothing and it didn’t save in the subsidy as intended but now the rakyat has to bear the brunt of price hikes from this Price Hike govt. Well done PMX & his incompetent economy minister!
Oh so generous,I thot govt bear 7trillion ,they still think we r all orang kampong
So,we spent 100juta Rm on eggs subsidy yesterday.The diesel subsidy rationalisation savings ,supposed to go back to deserving Rakyat…but how come the rich enjoy egg subsidies?
Later some genius economy minister say the rich has more children so they consume more eggs subsidy, more rice subsidy, more AP subsidy, etc LOL
Why do you think I am no longer their supporter? Many others are the same.
yes the rich enjoy the egg subsidies too, but the majority that enjoy this subsidies is the marhaen one. the one who do business use egg can jimat kaw2 a month. but diesel, the majority who enjoy the subsidies is the rich one. tak cerita smuggling lagi.
I dunno why gomen Must come up with a complicated formula. Just get rid of subsidies for all. Only then will currency strengthen and appreciate and bring cost of commodities priced in USD down.
Bcuz only the rich will benefit from subsidy removal?