Report: Country Facing Serious Subsidised Diesel Leakage

Post-pandemic subsidised diesel usage in Malaysia has increased by 70% to 10. billion now, says Minister of Finance II Datuk Seri Amer Hamzah Azizan.

According to Finance Minister II Datuk Seri Amer Hamzah Azizan, the country is facing a serious leakage of subsidised diesel, with the minister noting that ineligible parties are still enjoying this subsidy too.

Earlier this week, he told local newswire Bernama that subsidised diesel usage in post-pandemic Malaysia has increased to 10.8 billion litres. This highly contrast against pre-pandemic usage figure of around 6.1 billion litres, marking a sizeable 70% increase.

“For now, we feel that there is a high possibility that the subsidy has shifted to sectors that are not eligible for it,” said Datuk Seri Amer to Bernama further during a gathering of the Ministry of Domestic Trade and Cost of Living (KPDN) held this week.

He continued by stressing the need to stop this mismanagement and, specifically for this leak, he pointed out the need to deal with loopholes enabling it too. This, according to Datuk Seri Amer, is also causing greater financial burden on the country’s management.

“Looking at the amount of diesel subsidies given last year, it was about RM20 billion. So if we can in half, Alhamdulliah,” concluded the minister. Presently, subsidised diesel fuel retails for RM2.15 per litre, but companies not eligible for this subsidy face a higher cost of RM3.48 per litre instead.