The Malaysian government has not set a deadline for Budi Madani Diesel (Budi Diesel) applications to ensure that eligible owners of diesel vehicles can benefit from the fuel subsidy programme, New Straits Times reported.
This was to ensure fairness as a person’s circumstances could change over time, said finance minister II Datuk Seri Amir Hamzah Azizan. “A person might not own a diesel vehicle, but they might buy a pickup truck or four-wheel-drive vehicle next month,” he said.
The targeted subsidy mechanism was designed to ensure that government aid reached those who needed the aid, while reducing leakages and smuggling. “The important thing is to ensure that government funds are not diverted to those who are not entitled to subsidies. These funds must benefit Malaysians,” Amir Hamzah said.
The government announced on June 21 that the price of subsidised diesel for Malaysians will be reduced to RM2.10 per litre nationwide from July 1. This will also be applicable to Sabah and Sarawak, where diesel is presently priced at RM2.15 per litre, and the fuel price in these states will be reduced to match the upcoming RM2.10 per litre price for Peninsular Malaysia.
Meanwhile, the Malaysian government is open to proposals for the improvement of the Budi Madani Diesel fuel subsidy programme in order for it to run smoothly, Amir Hamzah has also said.
“When we first started implementing the RON 95 subsidy, some said the quota was insufficient. But now, after several months of implementation, we can see data from January to May this year shows that only 0.76% used more than 200 litres. So, let the system run first and see whether it is effective or not. If there are gaps in the system, the government has no problem reviewing it (the decision),” he said.
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