Diesel subsidy rationalisation to be done this year, says Domestic Trade Minister (Poll Inside)

KLANG: The rationalization of diesel subsidies will be done this year, says Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali.

However, he added that the date has yet to be confirmed.

“The Cabinet has agreed in principle to rationalise diesel subsidies this year. For now, the government is ironing out the details on how social aid is given to target groups.

“Only once the Cabinet is pleased with how social aid is handed out, we will give a date,” he told a press conference here after handing out fleet cards to land transport companies under the Subsidised Diesel Control System (SKDS) 2.0 project here on Thursday (May 23).

Armizan said that the decision to rationalise diesel subsidies was not done brashly, adding that it had already been announced last year.

“It is part of the government’s reforms, to ensure subsidies reach those in need. The government is not abolishing subsidies, but rather rationalizing them,” Armizan added.

On Tuesday (May 21), Prime Minister Datuk Seri Anwar Ibrahim announced that diesel subsidies would be rationalised for the peninsula.

Anwar said the move would save the government around RM4bil annually.

To prevent any drastic increases in the cost of goods and services, Anwar also said subsidies would be given to traders using diesel-powered commercial vehicles.

This involves 10 public transportation vehicles and 23 goods transport vehicles under the SKDS, including bus and taxi operators.

The Prime Minister also said diesel subsidies would continue for certain categories of fishermen.

Cash aid will also be given for eligible individuals such as small traders and farmers who own private diesel-powered vehicles.