Amir said this was proof that certain sectors had previously been purchasing subsidised diesel when they should have been purchasing it at market prices.

“Following the refocusing of diesel subsidies, the sale of diesel fuel at petrol stations decreased by nearly eight million litres per day, or 30%, in the first week after the announcement, compared with the week before the announcement,” he told the Dewan Rakyat.

“During the same period, commercial diesel sales increased by four million litres per day. This shows that some of the subsidised retail diesel had been consumed by the industrial sector when they should have been purchasing diesel at market prices instead.

“The increase in commercial diesel sales is a positive sign that the leakage of subsidised diesel has decreased.”

He said although the move to replace broad diesel subsidies with a more targeted mechanism will save the government RM4 billion a year, Putrajaya is still forking out up to RM10 billion in diesel subsidies.

Amir added that the government is confident of meeting the inflation (2%-3.5%) and GDP targets (4%-5%) for the year despite the changes in the country’s diesel subsidy programme.

The diesel subsidy in Peninsular Malaysia was lifted on June 10, with its price rising from RM2.15 to RM3.35 per litre.

However, the Budi Madani programme provides monthly aid of RM200 to selected vehicle owners and businesses to offset the higher pump prices.

For the diesel subsidy scheme, fishermen can obtain diesel at RM1.65 per litre, school bus operators and nine other sectors can enjoy subsidised diesel at RM1.88 per litre, while the logistics sector, involving 23 types of vehicles transporting goods, qualifies to enjoy subsidised diesel at RM2.15 per litre.