PUTRAJAYA, June 14 — Prime Minister Datuk Seri Anwar Ibrahim today reiterated that savings from the targeted diesel subsidy will be fairly returned to the people.
He previously emphasised the savings would be returned to the people, especially to support the needs of public transport and the Rahmah Cash Aid.
“We are not being unfair to the poor. Every extra sen we save, we will return (to the people),” he said at the Madani Aspiration Gathering of Public Service Counselling Associates here today.
Anwar said the targeted diesel subsidy was implemented due to excessive leakages, especially involving fuel use by foreign fishing vessels.
“The number of vehicles increased by around 8 per cent, but diesel usage has risen by 20 to 30 per cent, meaning there are leakages.
“Who pays for the leakages? The government. That money should have been channelled to education, healthcare, for the poor, but instead it is lost to these thieves, and that is why we need targeted subsidies,” he said.
The Prime Minister also wants strict action against any party that raises the prices of goods or services despite receiving diesel subsidies.
Citing school bus operators as an example, he said they risk having their licences revoked if they hike prices despite still receiving the subsidy.
The government announced that diesel in Peninsular Malaysia would cost RM3.35 per litre, the unsubsidised market price, effective 12:01am Sunday.
Finance Minister II Datuk Seri Amir Hamzah Azizan the market price was based on the average for May, according to the Automatic Pricing Mechanism.
The move is expected to save RM4 billion annually and strengthen the country’s financial position in the long term.
Amir said the targeted subsidy does not involve Sabah and Sarawak.
— Bernama
