Govt to refine targeted diesel subsidy, says Anwar

Govt to refine targeted diesel subsidy, says Anwar

Prime Minister Anwar Ibrahim says the move will benefit nine types of vehicles in the goods transportation sector.

Prime Minister Anwar Ibrahim speaking to reporters after the National Economic Action Council meeting. On the right is economy minister Rafizi Ramli.
PUTRAJAYA:
The National Economic Action Council has agreed to refine the targeted diesel subsidy, which will benefit nine types of vehicles in the goods transportation sector, Prime Minister Anwar Ibrahim said.

Anwar said the subsidy will be delivered through the “fleet card” system.

“This will ensure that the logistics sector can manage transportation of goods through the subsidised system and help the government’s efforts to curb inflation,” he said after chairing a council meeting here today.

The types of vehicles include general cargo lorries, beverage delivery lorries, refrigerator trucks, box trucks, heavy-duty trucks and tank trucks.

Anwar said the system will also help Putrajaya monitor diesel consumption and prevent leakages or misuse of targeted subsidies.

He said a review showed that diesel consumption increased by 37.7% from 6.1 billion litres in 2019 to 8.4 billion litres in 2022.

“At the same time, the number of registered vehicles using diesel increased by 2.4%,” he said.

He said the sudden increase in diesel consumption compared to the number of vehicles using diesel implied that certain parties were involved in smuggling activities.

No subsidies for homes with ‘excessive’ power usage

Meanwhile, Anwar said households with “excessive” power consumption will no longer enjoy electricity subsidies, adding that they will soon have to pay market rates.

“For example, one home using three fans and four air conditioners will have to pay their consumption in full and no longer enjoy subsidies.”

However, he said B40 and M40 households will not be affected.

Anwar said the council also agreed to set up a database to monitor and ensure that those in need received targeted subsidies.

“The database will compile as much information as possible from each household to help the government provide targeted subsidies and assistance more effectively,” he said.

The database will be operational next January.

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