KUALA LUMPUR: The government is studying the implementation of a diesel subsidy mechanism aligned with the Budi Madani system for RON95 petrol subsidies, says Communications Minister Datuk Fahmi Fadzil.
He said the matter was among the Cabinet’s current focuses amid ongoing discussions on targeted fuel subsidies.
“Right now, the government is examining issues related to diesel, including implementing diesel subsidies using a system similar to Budi95.
“This is the focus of the Cabinet,” he told reporters after the Cabinet meeting on Wednesday (May 13).
Fahmi was responding to questions on whether the government was considering reducing the Budi95 quota to 150 litres per month per individual following the current international situation.
He said the matter was not discussed during the Cabinet meeting, adding that the current focus was on aligning diesel subsidy distribution with the Budi95 mechanism.
On concerns raised following remarks by Deputy Finance Minister Liew Chin Tong suggesting the Budi95 quota could be reduced, Fahmi said the issue stemmed from a misunderstanding of the deputy minister’s statement.
“I understand that the statement was either retracted or the original report with the inaccurate headline was withdrawn by the media company involved.
“The Deputy Finance Minister has since issued a clarification on what he meant,” he said.
“I watched the video recording of his speech and it was quite clear that he was referring to studies by the Finance Ministry examining different quota levels, 300 litres, 200 litres, 150 litres and 100 litres, and how many Malaysians would benefit at each level.
“When those study levels were mentioned, they were misunderstood,” he added.
Asked whether the government planned to redefine existing income categories such as T20 and M40, Fahmi said the issue did not arise during the meeting and falls under the purview of the Economy Ministry and the Statistics Malaysia Department.
On whether Padu data used for the proposed T20-targeted RON95 subsidy system is updated in real time with agencies such as the Inland Revenue Board (LHDN), Employees Provident Fund (EPF) and Road Transport Department (JPJ), Fahmi said the matter was also not raised during the Cabinet meeting.
