Diesel subsidy rationalisation: Amir Hamzah to make announcement today

PETALING JAYA: Finance Minister II Datuk Seri Amir Hamzah Azizan will be holding a press conference on the diesel subsidy rationalisation today.

The event is scheduled to be held at 5pm at the Finance Ministry office in Putrajaya.

On May 24, Amir Hamzah said that diesel subsidies cost the government RM1bil a month, while losses from leakages amount to a whopping RM4.5mil a day.

He said the implementation of the targeted subsidy for diesel is among the key reform measures under the Ekonomi Madani framework to ensure sustainable fiscal management and to address the issue of serious leakages within the system, without compromising the rakyat’s welfare.

In announcing the fuel subsidy rationalisation in a national address on May 21, Prime Minister Datuk Seri Anwar Ibrahim said subsidies for diesel would be withdrawn for “the rich and foreigners”.

The diesel subsidy will first be rationalised in the peninsula, while the implementation in Sabah and Sarawak will happen later, he said, without mentioning any timeline for implementation.

To prevent any drastic increase in the cost of goods and services, Anwar said subsidies would be continued for traders using diesel-powered commercial vehicles and for public transportation.

Ten types of public transportation vehicles, including buses and taxis, as well as 23 goods transport vehicles, will come under the Subsidised Diesel Control System (SKDS).

Diesel subsidies will also continue for some categories of fishermen.

Anwar added that cash aid would also be given to eligible individuals who own private diesel-powered vehicles, such as small traders and farmers, among others.
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