PETALING JAYA: Some lawmakers have welcomed the rationalisation of the diesel subsidy, while others argued that it would further burden the rakyat.
Government spokesman Fahmi Fadzil said the government’s targeted subsidy efforts will help reduce leakages while increasing aid initiatives for the rakyat.
He said the savings generated from rationalising subsidies are channelled directly to the public through additional government initiatives, thus boosting people’s incomes and ensuring that subsidies do not end up in the hands of irresponsible parties.
Fahmi, also the Communications Minister, said the Road Transport Department reported that the country loses RM1.25mil daily due to leakages and diesel smuggling, adding that this substantial amount could instead be used to fund aid programmes for the people.
“For instance, it was reported that a lorry was caught late last night (Sunday) attempting to fill and smuggle 4,800 litres of diesel,” he said, reported Bernama.
Umno Youth chief Dr Muhammad Akmal Saleh said the wing supported the restructuring of fuel subsidies, but called for a gradual implementation.
“We understand the efforts needed to build our country, but at the same time, the diesel subsidy rationalisation should have been done in stages to avoid any sudden economic impact. We don’t want this policy to cause more harm than good to the people,” he added.Dr Muhammad Akmal said the rationalisation should have begun on a smaller scale to allow room to manoeuvre should challenges arise. He added that large-scale rationalisation should only be done once the economic situation stabilises, and even then, it should be implemented in phases.
PAS secretary-general Datuk Seri Takiyuddin Hassan said the party welcomed the goals for the diesel subsidy rationalisation, but also called for an easier process for groups in need.
“PAS welcomes the commendable goals outlined by the government about this measure, but at the same time feels the need to voice concerns related to its implementation, especially the possible negative impact on people’s lives.“This includes the proactive role of the agencies involved in ensuring they are identified and assisted accordingly. Red tape or bureaucratic inefficiency, for example, should not be an obstacle in this regard,” he said in a statement.
Bersatu president Tan Sri Muhyiddin Yassin said that the move taken by the government was “a bad decision” that would have immediate effects on the rakyat.
Saying it was “just the beginning,” the Perikatan Nasional chairman said the people will soon be further burdened when the government removes RON95 petrol subsidies.
Muhyiddin claimed that the Pakatan Harapan-Barisan Nasional administration’s move was evidence that it did not heed the people’s grouses.
“The cost to the people may be much higher compared than the RM4bil saved by the government through the rationalisation. Is this worth it?” he said in a statement.
“The increase in diesel prices by RM1.20 or 56% is very high and does not consider how the people are already being burdened by inflation and the high cost of living. The sudden increase will also cause an economic shock and multiplier effect on other economic and social sectors.
Gerakan national president Datuk Dominic Lau Hoe Chai echoed this sentiment, saying that the rakyat will be burdened with higher costs as traders will tend to increase the price of their goods.
On Sunday, Finance Minister II Datuk Seri Amir Hamzah Azizan said diesel prices will be floated and retail at RM3.35 per litre in the peninsula starting Monday.
He said the price is based on the Automatic Pricing Mechanism formula for May.
