KUALA LUMPUR, July 10 — Implementing the targeted diesel subsidy in Peninsular Malaysia is the first phase move to allow oil companies to develop and complete the necessary facilities and infrastructure, according to the Finance Ministry (MoF).
This is to ensure oil companies are ready if the move is extended to the states of Sabah, Sarawak, and the Federal Territory of Labuan.
"Currently the government does not intend to implement targeted diesel subsidy in Sabah and Sarawak because the majority of modes of transport to carry out economic activities as well as development programmes and projects in the two states use diesel fuel.
"Furthermore, the geographical situation there limits the feasibility of the 'fleet card' mechanism, which requires more sophisticated facilities and infrastructure, especially in the interior," it said.
The MoF was responding via a written reply published on the Parliament's website yesterday to Kuala Langat MP Datuk Ahmad Yunus Hairi's query on the rationale for implementing the targeted diesel subsidy only in the Peninsula without involving Sabah and Sarawak.
Meanwhile, in reply to Balik Pulau MP Datuk Muhammad Bakhtiar Wan Chik's query on how the government can save costs if eligible diesel users receive RM200 in Budi Madani monthly, it said the cash assistance is sufficient.
"The determination of the amount of cash assistance of RM200 per month is the result of in-depth research and consultation with various stakeholders, including vehicle owners, economic experts, and industry.
"Based on data from the Household Income and Expenditure Survey Report 2022 issued by the Department of Statistics Malaysia regarding monthly household diesel fuel expenditure, it is estimated that RM200 is a sufficient amount to cover the additional monthly diesel cost for 80 per cent of households in Peninsular Malaysia," MoF said.
The government will constantly monitor the current situation, including the implementation of the targeted diesel subsidy, and, if necessary, improvements from time to time will be made to ensure truly deserving groups continue to receive the government’s attention in facing the cost of living challenges.
— Bernama
