Targeted subsidies for petrol, diesel likely in 2024 using three mechanisms

KUALA LUMPUR: Targeted subsidies for petrol and diesel are likely to be carried out in 2024 using three mechanisms, says Rafizi Ramli.

The Economy Minister told the Dewan Rakyat that the first mechanism will be based on individual net disposable income.

The second mechanism will be based on net disposable household income through social protection or assistance schemes.

The third will be a combination of household and individual earnings, which will be implemented using a subsidies card.

Rafizi said the targeted subsidies program is expected to be implemented after the Central Database Hub (Padu) system is rolled out in January next year.

"Besides the form and mechanism of targeted subsidies, the Cabinet will decide on implementation and follow-up plans," he said.

These include communication, engagement and support plans to alleviate the burden of the people which will be coordinated by the entire government machinery," he said.

He was responding to a question from Khoo Poay Tiong (PH-Kota Melaka) on the engagement with stakeholders on targeted subsidies in 2024 and the type of targeted subsidies to be implemented.

On Nov 3, Prime Minister Datuk Seri Anwar Ibrahim said re-targeting diesel subsidies in phases will only be carried out in the peninsula.

Anwar, who is also Finance Minister, said this would not involve Sabah and Sarawak due to the extensive use of diesel in these states.