Sharp decline in daily retail sales of diesel shows abuse of fuel subsidy, says KPDN deputy minister

Sharp decline in daily retail sales of diesel shows abuse of fuel subsidy, says KPDN deputy minister

The drastic decrease in diesel sales following the implementation of the government’s fuel subsidy rationalisation programme points to the fuel subsidy being widely abused, according to domestic trade and cost of living deputy minister Fuziah Salleh.

In a post on her Facebook page, she said that there has been a substantial shift in diesel consumption patterns in the country since the introduction of the targeted diesel subsidy on June 10, with diesel sales having declined by 30%, equating to a reduction of eight million litres per day. Conversely, purchases of commercial diesel, which is sold at market price, have risen by four million litres per day.

Additionally, she said that petrol stations near Malaysia’s borders have seen a 40% downturn in diesel sales, The Star reports. “This is a clear indication that smuggling to neighbouring countries is a major issue,” she wrote, echoing what finance minister II Datuk Seri Amir Hamzah Azizan said earlier this week.

On June 10, rationalisation of the diesel fuel subsidy saw the retail price of Euro 5 B10 and B20 diesel in Peninsular Malaysia being increased by RM1.20, or 56% from its subsidised rate of RM2.15 per litre, to RM3.35 per litre.

Financial assistance to users of diesel fuel is now dispensed through the Budi Individual and Budi Agri-Commodity categories, through which eligible applicants will receive cash assistance of RM200 every month. Meanwhile, larger-scale land transport and logistics operators may apply for the subsidised diesel control system (SKDS) 1.0 and 2.0 schemes, which currently covers a total of 33 types of diesel-powered land transport vehicles.

Looking to sell your car? Sell it with Carro.

Certified Pre-Owned - 1 Year Warranty

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

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.



  • 4GR-FSE on Jun 28, 2024 at 10:29 am

    It is not a popular move but it is the right thing to do.
    And it is already yielding results, which shows the amount of abuse usage over the years.
    Now it is a matter of fixing and enhancing the targeted subsidy mechanism and there is no turning back to blanket subsidy. There will be people who are not happy about but we can’t be making everyone happy and promote the abuse of the subsidy. For those who complain, better put the effort in pressuring the government to enhance the subsidy mechanism rather than asking for blanket subsidy.

    It is also about time for the transportation sector to rethink on reducing carbon footprint by either phasing out inefficiency lorries or alternative energy such as EV buses.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Ahcong on Jun 28, 2024 at 10:58 am

    there will be sharp decline of diesel pickup truck later

    Like or Dislike: Thumb up 0 Thumb down 0
  • call me by your name on Jun 28, 2024 at 11:30 am

    im sorry now u noticed this?

    Like or Dislike: Thumb up 0 Thumb down 0
  • Zaman Jahiliah Maresya 2022 - Kini on Jun 28, 2024 at 11:45 am

    Don’t penalize the rakyat for your ministry’s poor enforcement. Very obvious your pegawai or penguatkuasa is on the take or sleeping on their jobs. The rakyat prefer these good for nothing gomen servants be sacked and their salaries put to better use. Stop feeding these parasites! Should we cut your toes before they turn gangrene from diabetes because you spend too much time mengeteh in the ministry’s canteen?

    Like or Dislike: Thumb up 2 Thumb down 0
  • So proud of solving smuggling of diesel by asking own citizens to pay higher price….. Not sure to praise or not to praise the intelligence of our government.

    Like or Dislike: Thumb up 0 Thumb down 0
  • sabahan on Jun 28, 2024 at 2:26 pm

    after a month of unsubisdy diesel, any statistic about sudden hike of RON95?

    Like or Dislike: Thumb up 0 Thumb down 0
  • hazri on Jun 28, 2024 at 3:01 pm

    ada jiran kt kelantan, ustaz, kesian dia lepas tak ada subsidi diesel ni. ingatkan kesian sebab anak ramai naik mpv diesel mahal. rupanya buat bisnes seludup diesel ke siam. selama ni selamba je boleh buat ribu2 seludup jual diesel. sekarang dah tak laku. benda ni bukan sorang dua buat rupanya, ramai yg buat. dah jadi benda biasa kat sana.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Bund sung Lee on Jun 28, 2024 at 6:38 pm

    Y abuse ,what border ctrl agencies doing at border ,Bez hafty monthly going to them ,
    Dnt knw y govt think they r talking to Kampong pple ,fuel prices adjust weekly as per prevailing international fluctuations,so much mess Bez of leats govt pass schools pple become mantry n run govt ,they knows nothing,they r like hit and tests and let’s see how later then ,
    All well connected to each other to pass benefits and rakyat they always make us fool

    Like or Dislike: Thumb up 0 Thumb down 0
  • Get rid of all subsidies, and focus on strengthening the currency.

    Like or Dislike: Thumb up 7 Thumb down 2
  • It can also meant people are not using their diesel vehicles.

    Like or Dislike: Thumb up 7 Thumb down 5
    • Add A Comment on Jul 01, 2024 at 10:42 am

      use brain la….if it is or commercial, business or for their living. U think ppl can just stop using overnight?

      Like or Dislike: Thumb up 0 Thumb down 3
  • if this is the real reason for the fuel subsidy “rationalization” exercise, then, please do hurry up on ensuring the ron 95 petrol prices are hiked to the global price levels as soon as possible (like yesterday) as this fuel has a much larger demand regionally and globally than diesel…

    and thus that will ensure no smuggling of ron 95 petrol will happen.

    Like or Dislike: Thumb up 10 Thumb down 0
  • Laugh on Jul 01, 2024 at 11:20 am

    Other than the smuggling, it just means the diesel vehicles are used less now. Same thing happened whenever fuel price is raised.
    Do you see as much 4×4 pickups on the road since the last diesel price increase.
    So much so, now all these pickups no longer drive like idiots when the light turns green.

    Same thing will happen if RON5 subsidy is removed later.

    Like or Dislike: Thumb up 2 Thumb down 0
  • Zaman Jahiliah Maresya 2022 - Kini on Jul 01, 2024 at 11:34 am

    Doesn’t take a genius to figure that out. That deputi minister should be checking the bank accounts of his penguatkuasa

    Like or Dislike: Thumb up 6 Thumb down 0
  • To fight smuggling, rakyat need to pay for consequences and yet our gov think they are so smart…..

    Like or Dislike: Thumb up 0 Thumb down 0

Add a comment