Subsidies distort the market, and as with the current debate, the wealthy benefit most from them simply because they consume more. — ZHAFARAN NASIB/The Star
There's a lot of angry chatter about the changes to how diesel is being sold with the introduction of the Budi Madani programme, a targeted subsidy for diesel vehicle owners in Peninsular Malaysia. And a lot of it is loud if only because everyone seems to be angry about it. But the more I hear and read about it, the more I realise: This is something I’ve heard before.
On the surface, the programme is intriguing. It aims to provide RM200 a month to recipients; eligibility includes owning a diesel vehicle that is less than 10 years old, and living in a household that earns less than RM100,000 a year. That is worth a dissection on its own already.
