Finance ministry seeks logistics industry's views on targeted diesel subsidies

KUALA LUMPUR: Treasury secretary-general Datuk Johan Mahmood Merican held a discussion on Friday with the logistics industry on the implementation of the proposed targeted diesel subsidies.

"This discussion was held to seek the views of associations and logistics companies about the scope and criteria for the proposed programme, especially to listen to the issues faced and measures for improvement,” the Ministry of Finance (MoF) said in a post on its official Facebook page today.

As tabled in Budget 2024, MoF said, the government will carry out the rationalisation of subsidies to prevent continuous leakage and smuggling.

"However, in order to reduce the impact on the prices of goods for the people, subsidised diesel prices will continue to be enjoyed by selected users such as goods transport companies,” it said.

The ministry said the diesel subsidy rationalisation mechanism will be carried out jointly with the Ministry of Domestic Trade and Cost of Living through the Subsidised Diesel Control System 2.0 pilot project.

"Once successfully approved under the domestic trade ministry's MySubsidi Diesel system, companies in the land transport sector (goods) can obtain fleet cards from selected oil companies to buy subsidised diesel,” it said.

The target subsidy would enable the ministry to channel the country’s revenue to the people who really need it.
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