Diesel is set to go down the targeted subsidy route soon, as mentioned by finance minister and PM Datuk Seri Anwar Ibrahim in the tabling of Budget 2024 last week. Aside from subsidy bill savings …
Aside from subsidy bill savings for the government, curbing leakage and smuggling was cited as a main reason – the price differential between our subsidised RM2.15 per litre and the price of diesel in countries that share a land border with Malaysia – Thailand and Indonesia – is substantial.. As such, the government is bearing RM1.60 for each litre of diesel sold at RM2.15 per litre, or around RM1.5 billion ringgit in total.
Parti Warisan says that those in Sabah and Sarawak will be affected too, and diesel subsidy should continue for the East Malaysian states. Warisan VP Datuk Junz Wong said the federal government’s announcement is causing growing concern among those in Borneo, which sees high use of diesel-powered 4WDs.
“This choice is often made out of necessity due to the unsuitability of smaller, cheaper sedans for these road conditions. The diesel subsidy has played a crucial role in alleviating these residents’ financial burden. It’s not just four-wheel-drive vehicle owners who will be affected. The cutback in subsidies also threatens the economic stability of villagers and farmers who rely on trucks and vans for agricultural activities,” he said.
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