The government does not withdraw the diesel subsidy, but it is targeted

KUALA LUMPUR: The Ministry of Domestic Trade and Cost of Living (KPDN) explained that the government is not withdrawing the diesel subsidy, rather the subsidy previously enjoyed in bulk has been targeted.

According to Bernama, KPDN Deputy Secretary-General (Domestic Trade Development), Datuk Roziah Abudin, said approximately 1.4 million diesel vehicles in Peninsular Malaysia and 23 types of land transport goods vehicles and 10 types of land public transport vehicles are eligible to receive diesel subsidies.

“There are vehicle owners from the individual group, although they are not targeted for the diesel subsidy through the Subsidized Diesel Control System (SKDS) method which is the giving of a feleetcard, but there is another method which is BUDI MADANI.

“After deducting T20, around 300,000 vehicles that are also owners from small traders will receive RM200 and BUDI MADANI Agri-Commodity. The government will bring as much as possible all those eligible to be targeted by SKDS 2.0 and cash assistance that enjoy RM2.15 diesel,” he said at Ruang Bicara program produced by Bernama TV, last night.

Roziah said, in 2019, RM1.4 billion was spent on subsidies, RM20 billion in 2022 and RM14.3 billion in 2023.

“The increase in diesel vehicles is only less than three percent, the question is who uses diesel? What we are saying is that there is a group called channel switching, who have been enjoying or buying at commercial prices due to the price difference, from the market price of RM3.50 to RM3. 60 at that time, who is not interested in buying at the price of RM2.15.

“The data shows that there is a leakage. Every quarter, we find gas stations applying for additional quota. Data analysis shows that the need should not be that high,” he said.

He said, until yesterday, more than 180,000 of the 223,000 goods vehicles were found to have not been registered under SKDS 2.0, and asked the owners of these vehicles to immediately make an application to enable them to enjoy the diesel subsidy from the government.

Meanwhile, KPDN’s Director General of Power Enhancement, Datuk Azman Adam said, KPDN confiscated almost 12 million liters of diesel through Op Tiris 1.0, which was implemented from 1 March 2023.

“The amount is quite large involving various parties orchestrated by local people and foreigners. We hope that the effectiveness can be enjoyed by taxpayers as well as being able to improve the country’s fiscal space for the better.

“In addition, a total of 210 notices were issued to traders in the sector of providing services and prices of goods. There are parties who use the connotation of a 56 percent increase in diesel for them to increase the price of goods and services by 56 percent, we want to warn them to be careful, because we will get there,” he said.