PUTRAJAYA, June 10 — Targeted diesel subsidies are necessary to save the country, said Prime Minister Datuk Seri Anwar Ibrahim.
Speaking at a monthly assembly with Prime Minister’s Department staff here today, Anwar said action must be taken even though it is recognised as an unpopular measure.
“We must be aware that whatever we do, we will be severely criticised with all sorts of slander and lies.
“We have said that all former Prime Ministers have agreed on the targeted subsidy, but there was no political will to implement it because of risks involved. However, to save the country, we have no choice,” said Anwar, who is also Finance Minister.
Yesterday, the government announced that diesel at all retail stations in Peninsular Malaysia will be set at RM3.35 per litre from 12.01am today.
Finance Minister II Datuk Seri Amir Hamzah Azizan said the new rate is the market price without subsidy based on the average for May 2024 according to the Automatic Pricing Mechanism formula.
He said the implementation of the diesel price float and targeted subsidies could provide savings of RM4 billion annually and strengthen the country’s financial position in the long term.
Amir said the move is to ensure diesel subsidies benefit only those eligible and to stop leakages, which have resulted in a loss for the people and the country.
However, the subsidy rationalisation will not affect Sabah and Sarawak consumers.
— Bernama
