Every cent saved from diesel subsidy cut will be fairly returned to the people - PM

PUTRAJAYA: Prime Minister Datuk Seri Anwar Ibrahim today reiterated that the savings from the targetted diesel subsidy implemented by the Unity Government will be fairly returned to the people.

He had previously emphasised that the savings diesel subsidy would be returned to the people, specifically to support the needs of public transportation and the Rahmah Cash Assistance (STR).

"We are not being unfair to the poor, every extra sen we saved, we'll return (to the people)," he said at the MADANI Aspiration Gathering of Public Service Counselling Associates (AKRAB) here today.

Anwar said the targetted diesel subsidy was carried out because of excessive leakage of the fuel, especially involving the use by foreign fishing vessels.

"The number of vehicles may have increased by around eight per cent, but diesel usage has risen by 20 to 30 per cent, meaning there is a leakage.

"And who pays for the leakage? The government. That money should have been channelled to education, healthcare, for the poor, but instead it is lost to these thieves, and that is why we need targetted subsidy," he said.

The Prime Minister also wants strict action to be taken against any parties that raise the prices of goods or services despite receiving diesel subsidies.

Citing school bus operators as an example, he said they would face having their licenses revoked if they raise their service prices despite still receiving the subsidies.

The government has announced that the price of diesel at all retail stations in Peninsular Malaysia is set at RM3.35 per litre, the market price without subsidy, starting from 12:01 am on June 10.

Finance Minister II Datuk Seri Amir Hamzah Azizan when announcing this explained that this is the unsubsidised market price based on the average for May 2024 according to the Automatic Pricing Mechanism formula.

By setting the price and implementing targeted diesel subsidy, it is expected to save RM4 billion annually and strengthen the country's financial position in the long term.

However, he stated that the targeted subsidy does not involve Sabah and Sarawak.

-- BERNAMA

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