This follows the implementation of the targeted diesel subsidy scheme on June 10, said the economy ministry, Bernama reported.

“The government estimates savings of RM4 billion in operating expenses per year through these targeted subsidy,” the ministry said on the Parliament website.

This came in response to Nordin Ahmad Ismail (PN-Lumut), who asked if there were any studies to assess the effectiveness of existing subsidies and whether targeted subsidies is a long-term solution.

“Starting this year, the government will implement targeted subsidies in phases to plug leakages that have resulted in billions of ringgit in losses to the country,” it said.

The ministry said targeted subsidies were implemented first for chicken and electricity.

The diesel subsidy using fleet cards involves 23 types of land transport vehicles.

“This way, approved logistics companies are eligible to get diesel supplies at petrol stations at RM2.15 per litre.

“Public land transport vehicles, including school buses, express buses, stop-and-go buses, ambulances and volunteer firefighters enjoy super subsidised prices at RM1.88 per litre and fishermen at RM1.65 per litre,” the ministry said.

Simultaneously, the government also launched the Budi Madani programmes for individuals and agro-commodities, involving cash assistance of RM200 per month to eligible private diesel vehicle owners. This group included small farmers and commodity smallholders.

“This monthly cash assistance can offset the effect of the rise in diesel prices without affecting the disposable income of the target group,” it said.

Diesel at the pump now costs RM2.95 per litre.