He called for the government to take such measures with caution in order to allow the people and the market to adjust, with rebates and financial aid channelled to the B40 and M40 groups to balance any increase in the price.

“I understand the need for such rationalisation, especially for diesel, but it must be done progressively. There must not be a sudden huge increase or for the price to be floated immediately to prevent a sudden shock to the market.

“Currently, the price of diesel in the open market is RM3.75 a litre while the subsidised diesel price is RM2.15 a litre,” Yii said in a statement.

He added that subsidised diesel sales in Malaysia have increased by up to 40% since 2019, while diesel vehicle sales have not even increased by 3%.

Yii said this suggested rampant smuggling was taking place, with the annual bill to the taxpayer amounting to RM1.5 billion.

“The public needs a proper time frame, as well as a comprehensive mechanism to bring in the scheme, so that in our efforts to reduce wastage and corruption, we do not over burden those that really need it,” the DAP Socialist Youth (Dapsy) chief said.

Yii said this is especially true for Sabah and Sarawak, which are heavily dependent on diesel vehicles.

He also called for the government to be clear about the savings it will make and how such funds will be spent.

“They must be easy to understand by the common people and also impactful to them.”