Claims on social media that diesel subsidy will be discontinued on Jan 1, 2024 is fake news, says the domestic trade and cost of living ministry (KPDN).
In the denial statement released yesterday, reported by Bernama, the ministry said that it is instead carrying out a pioneer project to evaluate the effectiveness of the fleet card and MySubsidi Diesel systems involving six companies with skid tank quotas ending January 14, and the pioneer project does not involve individual diesel vehicles.
“The testing process needs to be implemented to look at the system’s efficiency so that it really meets the specifications and objectives of the diesel subsidy restructuring as planned. KPDN hopes there will not be any parties spreading unclear or confusing statements,” the statement read.
KPDN added that an official statement on the restructuring of diesel subsidies will be made by the ministry and the finance ministry after engagement sessions and a trial run of the fleet card and MySubsidi Diesel systems are completed.
While January 1 is fake news, diesel is set to go down the targeted subsidy route soon, as mentioned by finance minister and PM Datuk Seri Anwar Ibrahim in the tabling of Budget 2024. He said that subsidised diesel will continue to be enjoyed by groups such as goods transport and logistics companies, while other users will be charged a higher price.
Aside from subsidy bill savings for the government, curbing leakage and smuggling was cited as a main reason – the price differential between our subsidised RM2.15 per litre and in neighbouring countries is substantial. Anwar said that the market price for diesel is RM3.75 per litre and the government is bearing RM1.60 for each litre of diesel sold at RM2.15 per litre, or around RM1.5 billion ringgit in total.
Although only diesel was mentioned in Budget 2024, it was subsequently announced that blanket petrol subsidies will also be ending in the second half of 2024. Next month, Malaysians will need to register themselves online at the Pangkalan Data Utama (PADU) website to find out if they qualify for the targeted RON 95 subsidy – full story here.
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