Targeted Subsidy Reduces Diesel Misuse - Armizan

KUALA LUMPUR, Dec 3 (Bernama) -- The implementation of targeted diesel subsidy which began in June in Peninsular Malaysia has shown a reduction in diesel fuel abuse case captures /seizures and more controlled consumption.

Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said data showed a decrease in diesel fuel abuse to 321 cases since the targeted diesel subsidy was implemented until now compared to 774 last year.

“In terms of consumption, if we look at Op Tiris since the targeted diesel subsidy was implemented, the consumption or value of the seized cases has decreased by 71 per cent for diesel but there is an increase in cases for RON95 by seven per cent.

“So we can see from the data that the targeted diesel subsidy is effective, but we admit that in terms of the cost of living, the prices of goods directly linked to (the targeted diesel subsidy) are not significant but more of a price movement due to demand and supply,” he said during a question and answer session at Dewan Rakyat today.

He was responding to a supplementary question by Datuk Rosol Wahid (PN-Hulu Terengganu) who asked whether the government agreed that targeted diesel subsidy was not very effective in overcoming the problem of diesel fuel smuggling and was only the main cause of the increasing the cost of living.

Responding to a supplementary question from Dr Richard Rapu (GPS-Betong) who wanted to know the effectiveness of monitoring and enforcement carried out by the ministry in curbing the diversion of subsidised fuel supplies, especially in Sabah and Sarawak, Armizan said a meeting to be chaired by Deputy Prime Minister Datuk Seri Fadillah Yusof would be held in Kuching, Sarawak on Dec 14.

“This meeting is to see what approaches we need to strengthen so that we can curb and eradicate subsidy leakage, especially untargeted diesel subsidies for Sabah, Sarawak and Labuan,” he said.

Earlier, answering Rosol's original question on the number of arrests and seizures for diesel subsidy abuse cases since 2022 until now, Armizan said that from January 2022 to October, a total of 1,617 cases were recorded in Peninsular Malaysia, Sarawak (421 cases), Sabah (141 cases) and Labuan (11 cases).

"The total value of diesel seizures generated was RM47 million. The number of arrests made during that period was 1,177 people involving citizens and non-citizens," he said.

-- BERNAMA