Following the implementation of the diesel fuel subsidy rationalisation programme, which saw diesel prices in Peninsular Malaysia jump up to RM3.35 and RM3.55 per litre for Euro 5 B10 and B7 diesel respectively, the government has now seen a 78% reduction in diesel subsidy leakage, New Straits Times reports.
According to the Domestic Trade and Consumer Affairs Deputy Minister Fuziah Salleh, who was speaking to the Dewan Rakyat today, diesel seizures has also decreased by 87% following the implementation of the floated pricing mechanism.
The figures were derived from Ops Tiris data, and was based on a comparison of the 20 days before and after the implementation of diesel rationalisation on June 10, Fuziah said.
Retail sales of diesel dropped 37% within the first week of the subsidy rationalisation programme, though commercial diesel sales increased by 44% during the time, while border diesel sales decreased by 24%.
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In a response to Datuk Rosol Wahid, Fuziah said that the ministry has identified two subcategories of goods that have seen an increase in price as a result of the diesel subsidy rationalisation programme – Meat and vegetables have seen varying percentages of increases ranging from 0.24-53.6%.
However, the significant rise in vegetable prices last month was also attributed to unpredictable weather conditions, and many items have also either remained stable or even decreased in price a month after the implementation of diesel subsidy rationalisation. “Therefore, attributing the increase in the cost of living solely to the reduction in diesel subsidies is not justified, as other factors also contribute to the rise”, Fuziah added.
The domestic trade and cost of living ministry (KPDN) previously stated that it will be meeting with five major oil companies on June 18 for the purpose of expediting the issuance of fleet cards under the subsidised diesel control system 2.0 (SKDS 2.0), which will help distribute diesel fuel subsidies to public and goods transport vehicles.
Private diesel vehicle owners meanwhile can apply for the BUDI Madani programme, which will disburse up to RM200 monthly for the purpose of targeted diesel subsidies.
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