SUNGAI PETANI: The government is conducting a comprehensive study of proposals to expand the diesel subsidy scheme to ensure that more affected groups, including farmers, benefit from the initiative.
The Finance Minister’s political secretary, Muhammad Kamil Abdul Munim, said the government continues to listen to grievances from groups affected by rising diesel prices and is identifying ways to assist them.
Among the measures under consideration, he said, are targeted subsidies similar to those implemented under the Budi Madani RON95 (Budi95) programme, as well as expanding the use of fleet cards to other groups who were previously considered ineligible, including farmers.
“All these matters are under study, including feedback from farmers, some of whom are not subscribed to the existing scheme but are nonetheless affected.
“The government is comprehensively examining the entire matter to ensure that no party is left behind,” he told reporters after attending an Aidilfitri open house in Gurun recently, Bernama reported.
He said the successful implementation of the Budi95 programme, which recorded minimal issues, serves as a key reference in formulating a new approach to expanding the diesel subsidy, with an emphasis on a more efficient, simple and seamless rollout.
Meanwhile, Muhammad Kamil said the government is taking into account current fiscal challenges, as expenditure to cushion rising fuel prices has surged from about RM700mil to RM6bil.
“This increase reflects the government’s strong commitment to ensuring the people are not severely affected by rising global oil prices, but at the same time, we need to assess our current financial capacity,” he said.
He added that subsidy rationalisation measures, expenditure savings and enforcement efforts to curb leakages have so far enabled the country to absorb the impact of rising global oil prices.
“But if costs continue to rise, I do not think it is appropriate for us to remain in the current position. Instead, we need to make adjustments and shift in line with current economic developments,” he said.
On ferry services to Langkawi that have also been affected, he said the matter falls under the jurisdiction of the Transport Ministry, which will evaluate any proposals for improvement, including the implications for the tourism sector on the resort island.
