MOF Studying Targeted Diesel Subsidy Process Similar To BUDI95

PUTRAJAYA, April 15 (Bernama) -- Prime Minister Datuk Seri Anwar Ibrahim has instructed the Ministry of Finance (MOF) to immediately study the targeted diesel subsidy process, using the same mechanism as BUDI95. 

Communications Minister Datuk Fahmi Fadzil said MOF has also been asked to present details of the process either at the National Economic Action Council (MTEN) meeting next Tuesday or at the Cabinet meeting on Wednesday.

The MADANI Government spokesperson said the government has begun reviewing the best mechanism to move from cash transfers to a BUDI95-style system in the distribution of the BUDI Diesel Individu subsidy.

“When the time comes, we expect this to benefit Malaysians, for example, those driving pickup trucks. The process will be simpler, more efficient and more effective, as seen in the implementation of BUDI95,” he said.

He said this at a global energy crisis briefing and post-Cabinet press conference here today.

Fahmi said the government has taken a firm stance in addressing issues of diesel leakages, smuggling and misappropriation by implementing several immediate enforcement measures nationwide.

“This includes deploying security forces, particularly the Royal Malaysia Police, to more than 150 petrol stations identified as high-risk in border areas to curb smuggling and misappropriation activities,” he said.

He said MTEN, which met yesterday, also raised concerns over a petrol station recording fuel sales significantly higher than other stations nationwide, despite having a low surrounding population.

Fahmi added that the government is studying different mechanisms for targeted diesel subsidies for the fisheries sector, with further discussions to be held with the Fisheries Development Authority of Malaysia (LKIM).

“For the fisheries sector, for example, MTEN discussed the matter, and the Agriculture and Food Security Minister is studying a slightly different mechanism that may be implemented, subject to further discussions, including with LKIM.

“This will be reported and discussed in greater detail at next week’s MTEN meeting if all necessary information has been obtained,” he said.

-- BERNAMA