Petrol price hike reveals diesel subsidy abuse, says Malaysia's KPDN Deputy Minister

Malaysia's Deputy Minister of Domestic Trade and Cost of Living, Fuziah Salleh, has revealed a significant decline in daily retail sales of diesel following the government's recent policy change. This substantial drop is being seen as a strong indicator of widespread abuse of the previous fuel subsidy system.

Subsidy Revamp Signals Positive Change

The Malaysian government implemented a "targeted diesel subsidy" on June 10th, 2024. This policy aims to ensure that the subsidy reaches its intended beneficiaries and eliminates unnecessary wastage.

Data Tells the Story

Since the introduction of the targeted subsidy, retail diesel sales have witnessed a staggering 30% decrease. This translates to a daily reduction of a staggering 8 million liters of diesel being sold.

Border Sales Take a Hit Too

The impact isn't limited to domestic consumption. Petrol stations situated near Malaysia's borders have also reported a significant downturn in diesel sales, with figures suggesting a 40% drop. This points towards potential smuggling of subsidized fuel to neighboring countries.

Targeting the Right Audience

"The drastic decrease in sales clearly indicates that the fuel subsidy was being widely misused," stated Deputy Minister Fuziah. The targeted subsidy approach aims to make the system fairer and more efficient, ensuring that the financial benefits reach those who truly need it.

Benefits Beyond Fuel Prices

Prime Minister Datuk Seri Anwar Ibrahim emphasized that the policy's primary goal is to eliminate subsidy wastage. These recovered funds can then be redirected towards supporting broader segments of the population.

Curbing Abuse, Ensuring Sustainability

The Malaysian government's initiative to tackle diesel subsidy abuse highlights a global issue. Many countries grapple with similar challenges in ensuring that fuel subsidies reach their intended targets. By implementing targeted programs and monitoring consumption patterns, governments can create a more sustainable and equitable system.

Finding the Latest Petrol Prices

Wondering how the petrol price situation is faring in Malaysia? Head over to Motorist Malaysia to get the latest updates on RON95, RON97, and other fuel types.

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