Diesel subsidy claims down by 51.6% in August vs May – Economy Ministry

KUALA LUMPUR: Diesel subsidy claims by oil companies for August 2024 have decreased by 51.6% against claims in May 2024 since the June 10 2024 implementation of targeted diesel subsidy, said the Economy Ministry.

It said the number of claims also fell by 47.4% over the same period.

“Starting this year, the government will implement the targeting of subsidies in phases to plug in leakages which have resulted in billions of ringgit losses to the country.

“The government estimates savings of RM4 billion in operating expenses per year through the targeted implementation of diesel subsidy,“ the ministry said on the Parliament website in response to Commander Nordin Ahmad Ismail TLDM (Retired) (PN-Lumut) who asked if there are any studies or plans to assess the effectiveness of existing subsidies and whether targeted subsidy is a long-term solution.

The Economy Ministry said after targeted subsidies were implemented for chicken and electricity, the government implemented a targeted diesel subsidy involving 23 types of land transport vehicles for goods through the subsidised diesel control system (SKDS 2.0) using fleet cards.

“Through this method, approved logistics companies are eligible to get diesel supplies at petrol stations at RM2.15 per litre.

“Public land transport vehicles including school buses, express buses, stop-and-go buses, ambulances and volunteer firefighters still enjoy super subsidised prices at RM1.88 per litre and fishermen at RM1.65 per litre,“ he said.

Simultaneously, the government also launched the individual BUDI MADANI and the agro-commodity BUDI MADANI programmes involving cash assistance of RM200 per month to eligible private diesel vehicle owners including small farmers and commodity smallholders.

“This monthly cash assistance can offset the effect of a rise in diesel prices without affecting the disposable income of the target group,“ he said.

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