KOTA KINABALU: The targeted diesel subsidy programme, which will be implemented nationwide starting July 1, is expected to reduce fuel leakages by up to one billion litres annually, says Datuk Seri Amir Hamzah Azizan.
The Finance Minister II said subsidy leakages had previously been prevalent in the diesel sector because MyKad-based verification was not as widely implemented as it is for RON95 petrol.
He said the use of MyKad ensures only eligible Malaysian citizens receive subsidised fuel, while non-citizens must buy diesel at the prevailing market price.
“Cutting leakages will result in lower subsidy expenditure and a more stable domestic fuel supply.
“It is important that we make sure our subsidy is enjoyed by Malaysians who are eligible,” he said at a briefing on the diesel subsidy in Sabah.
“As with all new policies, there will be an adaptation period and room to discuss what’s right and wrong about the scheme.”
On the registration process, he said eligible recipients would not be required to register, as eligibility would be determined automatically through existing government databases.
Individuals seeking an additional quota of 100 litres per month under the Budi Diesel programme must apply through the designated online portal or seek assistance at Inland Revenue Board offices, he said.
The minister expressed confidence that the use of MyKad would not pose difficulties, particularly in rural and remote areas, as a similar mechanism has already been successfully implemented through the Sumbangan Asas Rahmah (Sara) programme.
On another matter, he said the government is expanding the Sara programme by increasing the number of participating retail outlets that accept MyKad transactions, including in rural and remote areas, to make it easier for recipients to get essential goods.
He said more than 13,500 shops nationwide are now registered under the programme, including over 6,500 sundry shops.
