Targeted subsidy for RON 95 petrol has to be done because of subsidy leakage, which benefits groups who are not supposed to enjoy subsidies. According to second finance minister Datuk Seri Amir Hamzah Azizan, based on current data, it is estimated that over 40% of petrol usage is by foreigners, the commercial sector and smuggling.
“As the level of RON 95 petrol subsidy is around RM20 billion a year, if leakage to foreigners, the commercial sector and the rich can be solved, it’s bound to save up to RM8 billion a year,” Amir Hamzah told parliament today, reported by Bernama.
The senator and former EPF CEO also touched on the removal of blanket subsidy for diesel, which happened in June this year. Based on the latest data, Amir Hamzah said that there’s a drastic drop in the sales of diesel at the pumps, which points to the reduction of smuggling.
He said that diesel sales at pumps are down by 25%, or nearly seven million litres per day, while commercial diesel sales are down by nearly 50%, or four million litres a day. This shows that industries have stopped buying subsidised diesel. “Based on early data, targeted diesel subsidy has so far saved (the government) around RM600 million a month,” he shared.
As announced in Budget 2025 by prime minister Datuk Seri Anwar Ibrahim, targeted subsidy for RON 95 petrol will come into place from mid-2025.
With the timeline set, the two big things left to be determined are ‘who will be excluded’ (T15 maha kaya was mentioned in the budget, but the PM has since walked back – it could even be T10, still under discussion) and the mechanism (direct cash handout/no two-tier price at pump, MyKad or vehicle type, as some have suggested).
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If the removal of diesel subsidy caused the drastic drop in sales and suggest a reduction in smuggling, wouldn’t it be very simple to know which petrol stations are involved in the smuggling?
Why r we paying salaries(with increments) to our enforcement dudes? To keep an eye,memantau,without any real enforcements with jail terms for the culprits?
Come on Mr Amir..I thot Rafizi is unbelievably horrible,u seem to be …..
Where is the diesel floatation savings? 4 Billion Rm.
Now Madani is saying 8 Billion RM for petrol.
Every now n then,the surprises from this govt keep the rakyat on edge.
Folks,lets give a surprise to the underperforming dudes at GE16.
Yes we do and they’re under our protection
Extra sikit tu OK la
Murah lagi berbanding
Dgn interest loan kereta
100K loan 2.5% =2,500 setahun
Now we have daily dose of multiple jokers around us we call them politicians
He’s not even be any party member.
The politicians are probably making money from smuggling that’s why it’s been continued for so long.
If subsidies, are rationalise, can gomen retrench the enforcers ? I dont think so.
Removing subsidies should result in stronger RM.
Easy la. Subsidies for bumi only. Confirm your next election no problem sure win.
My suggestion:
1. Bring back GST
2. Float RON 95 petrol price (RON97 and diesel already floated)
3. Reduce income tax for Malaysian. This would especially help M40 and T20, exclude T5 (almost equivalent to giving subsidy)
4. Cash aids to B40 (or teach a man how to fish…….)
Bring it on minister.
Do not delay any longer.
Good for rempits + fuel guzzling vehicle owners.
Bunch of clowns…want to increase price…increase la…not need to give / make up all sorts of reasons. You think we minions meh.
It’s something like there was a theft, and police urge ppl to buy some weapon to protect themselves.
Anwar， bagi anda cadangan kalau tak ada duit
1) Pecat penjawat awam yg berlebihan
2) Pastikan tidak ada penyalahgunaan kuasa drp pengurusan GLC. Rugi masih bonus tinggi!
3) Pastikan agensi pelaburan buat kerja dgn betul. Walaupun tak boleh kutuk gunakan duit tu tolong golongan tak pandai jalankan perniagaan. Tapi biarkan betul betul tolong org yg benar benar nak berusaha!
4) Pastika org main politik tak makan rasuah
Jangan buat tak tahu. Hanya tahu minta duit titik peluh drp golongan T15!
yang busuk-busuk kena explain is his macai,
tapi kalau achievement, accomplishment, dia..
how kelakar is that.
This is a joker. How do you derive the 40% that our fuel is being used by foreigners, smuggling, commercial and T20??? Pls explain how you derive the figure??? You are able to get the data who and background of the person is pumping at the station??? Come on….Malaysians especially tax payers are not stupid!!!! I wonder why are our taxpayers money being wasted and feed the luxury lives of the liars!!!
remove subsidy to fight leakage. we never heard this measure from PH during their time as opposition. so punish whole rakyat for weakness of enforcement.
Kelakar betul kerajaan anwar ni. Suka suka denda rakyat. Siapa bertanggungjawap nak jaga minyak subsidi tidak diseledup and disalah gunakan? Agensi agensi kerajaan kan? Kenapa diapa buat kerja tak betul, menyebabkan ketirisan tetapi yang kena denda ialah rakyat? Kelakar mamat ni.
“40% of RON95 used by foreigners, commercial, smuggling”, then why punish the rakyat instead?? u tackle these 3 can save 40% already what.
Then target the 40% foreigners, the commercial sector and smuggling..
Been so long hearing about the 40% reduction in diesel sales since removal of subsidy.
All claim these are result of no more theft or smuggling of diesels.
Nothing mentioned about the immediate reduction in people using diesel vehicles.
Almost instantly can see reduction in 4x4s on the roads and they drive much sanely after the removal of subsidy.
I totally support removal of subsidy for petrol also.
However, to penalize the T15 especially when there’s no proper statistics especially on those evading taxes is extremely unfair.
The most fair option is to based the subsidy on the vehicle used.
So much B40 driving performance, modified, luxury cars.
Just go to any PPR and see for yourself the cars parked there.
Please do the right thing and make sure do thing right.
As a foreigner and an xpat, me and many people like me also contribute the income tax a lot every year and we don’t receive any subsidy from the government, we use many service in Malaysia and have to pay as foreigner travellers too.
Petrol subsidy is the only benefit that we could get from Malaysia government. If it is cut then we get nothing here technically.
I hope that one day everyone who contributed to Malaysia tax could be get the same benefits.
Dah mula lah taktik lama using “smuggling” and ‘foreigners’ as an excuse to naik harga. They thought people are so stupid by using excuses that we all cannot verify the truth.