Diesel subsidy rationalisation has saved Malaysia RM600mil each month since programme began: Anwar

The government says that the subsidy rationalisation for diesel fuel has significantly reduced leakages caused by smuggling and misuse by ineligible businesses to the tune of around RM600 million each month, the New Straits Times reports.

According to prime minister Datuk Seri Anwar Ibrahim, this has been the monthly savings that has been achieved since the implementation of the Subsidised Diesel Control System (SKDS) 2.0 programme up until December 31. He said that the success of this initiative was reflected in a significant 25% reduction in diesel sales at petrol stations, translating to a decrease of nearly seven million litres per day.

“Sales of commercial diesel have increased by almost 50%, or by four million litres per day, indicating the substantial amount of subsidised diesel that was previously being purchased by the industrial sector from petrol stations before the controlled floating of retail diesel prices,” he said in a written parliamentary response to Cha Kee Chin (PH-Rasah).

Diesel subsidy rationalisation has saved Malaysia RM600mil each month since programme began: Anwar

Cha had asked about the total accumulated amount of diesel subsidy savings for the previous year since the implementation of SKDS 2.0 began on June 10, and how these savings were being used for the benefit of the public.

Anwar replied that the savings have enabled the government to allocate funds for various development projects, including improvements to public infrastructure, healthcare, and education. “These projects will focus on the construction and repair of roads, bridges, hospitals, health clinics, and schools, benefiting the public as a whole,” he said.

He added that these savings had also allowed the government to reallocate funds for social support programmes such as cash assistance initiatives like the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (Sara), by increasing the allocation for STR and Sara to RM13 billion from the RM10 billion in the previous year.

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