Diesel Subsidy Claims By Oil Companies Fall 51.6%

Since the targeted diesel subsidy was implemented on June 10, oil companies' claims for diesel subsidies have dropped 51.6% in August compared to May, according to the Ministry of Economy. This represents a 47.4% decrease over the same time period.

The government will begin implementing the targeting of subsidies in phases starting this year, the ministry added, in an effort to stop leaks that have cost the nation billions of ringgit.
Responding to Lumut MP Commander Nordin Ahmad Ismail's inquiry about whether there are any plans to evaluate the efficacy of current diesel subsidies, the Economy Ministry stated on the Parliament website yesterday that "the government estimates savings of RM4 billion in operating expenses per year through the targeted implementation of diesel subsidy."
Diesel currently costs RM2.95 per litre at the pump; the diesel subsidy uses fleet cards, which include 23 different types of land transport vehicles, to guarantee that approved logistics companies can purchase diesel supplies at petrol stations for RM2.15 per litre.
“Public land transport vehicles, including school buses, express buses, stop-and-go buses, ambulances and volunteer firefighters enjoy super subsidised prices at RM1.88 per litre and fishermen at RM1.65 per litre,” the ministry said.


In addition, the government simultaneously introduced the Budi Madani programs for individuals and agricultural products, which provide qualified private diesel vehicle owners with RM200 in monthly financial assistance.
“This monthly cash assistance can offset the effect of the rise in diesel prices without affecting the disposable income of the target group,” it said.