KUALA LUMPUR: The Domestic Trade and Cost of Living Ministry (KPDN) has clarified that the government has not withdrawn diesel subsidies, but has instead shifted from bulk to targeted subsidies.
KPDN deputy secretary-general (domestic trade development) Datuk Roziah Abudin said that approximately 1.4 million diesel vehicles in Peninsular Malaysia, along with 33 types of public transport and commercial vehicles, are eligible for subsidised diesel.
“Although individual vehicle owners are not listed under the Subsidised Diesel Control System (SKDS) using the fleet card method, they can still benefit through the BUDI MADANI initiative.
“After excluding the T20 group, around 300,000 vehicles owned by small traders will receive RM200 under BUDI MADANI Agri-Commodity. The government aims to include all eligible parties under SKDS 2.0 and provide cash assistance to enjoy diesel at RM2.15 per litre,” she said when appearing as a guest of Bernama TV’s Ruang Bicara programme tonight.
Roziah mentioned that in 2019, the government spent RM1.4 billion on diesel subsidies, RM20 billion in 2022, and RM14.3 billion in 2023.
“The number of diesel vehicles has only increased by less than three per cent, raising the question of who is using diesel.
“Data shows leakage. Every quarter, we find petrol stations requesting additional quotas and data analysis indicates that the actual demand shouldn’t be that high,” she explained.
Meanwhile, KPDN Enforcement director-general Datuk Azman Adam said that nearly 12 million litres of diesel were seized during Op Tiris 1.0, conducted since March 1, 2023.
“Additionally, 210 notices were issued to traders. Some quarters used the 56 per cent increase in diesel prices to justify raising their prices. Beware because we will take action,” he said.
