Sharp decline in diesel sales shows subsidy misuse, says Fuziah

PUTRAJAYA: A drastic decrease in diesel sales following the subsidy rationalisation policy points to the fuel subsidy being widely abused, says Fuziah Salleh.

The Domestic Trade and Cost of Living Deputy Minister said since the introduction of the targeted diesel subsidy on June 10, there has been a substantial shift in diesel consumption patterns in Malaysia.

"Diesel sales have declined by 30 per cent, which equates to a reduction of 8 million litres per day. Conversely, purchases of commercial diesel, which is sold at market price, have risen by 4 million litres per day," Fuziah said in a post on her Facebook page on Thursday (June 27).

Additionally, she said that petrol stations near Malaysia's borders have seen a 40 per cent downturn in diesel sales.

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"This is a clear indication that smuggling to neighbouring countries is a major issue," she clarified.

Prime Minister Datuk Seri Anwar Ibrahim has stressed that the primary aim of the diesel subsidy rationalisation policy was to eliminate the wastage of subsidies and ensure that the reduced expenditure benefits a wider segment of the population.

The optimisation of the subsidy is projected to save the government around RM4bil annually, thereby fortifying the country's financial standing.