According to a report by Bernama, the government estimates that over RM250 million in diesel leakage has been prevented due to smuggling or misappropriation at fuel stations along the Peninsular Malaysia borders since the fuel subsidy rationalisation programme began on June 10 this year.
Finance minister II Datuk Seri Amir Hamzah Azizan, who previously said Malaysia is facing a serious problem with subsidised diesel leakages, stated that diesel sales decreased by 23% or 6.5 million litres per day, while commercial diesel sales increased by 4.8 million litres per day.
He added that when diesel was at a subsidised price of RM2.15 per litre, businesses sourced diesel from petrol stations instead of purchasing commercial diesel at over RM3 per litre. “Now, with the petrol station price set at RM3.35 per litres, the industries have shifted to buying commercial diesel,” Amir Hamzah said.
“Petrol stations near the northern border have also experienced a 40-50% drop in sales, indicating a decrease in smuggling activities to neighbouring countries due to reduced profit margins for smugglers, he added.
The implementation of the fuel subsidy rationalisation programme, which includes targeted diesel subsidies, is expected to save the country RM4 billion annually to improve its fiscal position. At present, diesel sold in West Malaysia retails for RM3.35 per litre, while it is RM2.15 per litre in Sabah, Sarawak and Labuan due to specific reasons.
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