6.5 MLN LITRES OF DIESEL MISAPPROPRIATED DAILY BEFORE TARGETED SUBSIDY - AMIR HAMZAH

KUALA LUMPUR, July 23 (Bernama) -- The Ministry of Finance has concluded that at least 6.5 million litres of diesel were misappropriated by industries or smuggled into neighbouring countries daily before the targeted diesel subsidy was implemented.

Finance Minister II Datuk Seri Amir Hamzah Azizan stated that the rationalisation of diesel subsidy has resulted in a 23 percent or 6.5 million litres reduction in daily sales, at petrol stations in Peninsular Malaysia.

He noted that in early June the average daily diesel sales was 28.6 million litres, which dropped to 22.2 million litres in early July 2024.  

"This conclusion is supported by data showing that daily commercial diesel sales have increased by 4.8 million litres over the same comparison period.

"Given that the current price at petrol stations is RM3.35 per litre, industries that previously purchased subsidised diesel have now switched to commercial diesel," he informed the Dewan Negara today.

He was responding to questions from Senators Datuk Dr. Azhar Ahmad, Datuk Shamsuddin Abd Ghaffar, and  Datuk Abdul Halim Suleiman, who had collectively inquired about the effectiveness of the MADANI Subsidy Assistance (BUDI MADANI) initiative following the diesel subsidy rationalisation. 

Amir Hamzah clarified that some petrol stations near the border in northern Peninsular Malaysia have experienced a drop in diesel sales of up to 40 to 50 percent since the measure took effect. 

"This situation reflects a decrease in smuggling activities to the neighbouring country due to reduced profit margins for smugglers," he added.

Meanwhile, the minister stated that the government provides a monthly RM200 cash aid for small farmers and smallholders whose annual sales fall between RM50,000 and RM300,000. 

Eligible small farmers and smallholders registered with the GeoAgro portal of the Ministry of Agriculture and Food Security and agencies under the Ministry of Plantation and Commodities can apply for this assistance, he said. 

"Eligible small farmers and smallholders can also benefit from the Subsidised Diesel Vehicle Scheme (SKDS) 2.0 for logistics vehicles to prevent raising transportation costs," he said.

-- BERNAMA