Govt Studies Diesel Subsidy Expansion, Ensuring No Group Is Left Out

SUNGAI PETANI, April 12 (Bernama) -- The government is conducting a comprehensive study of proposals to expand the diesel subsidy scheme to ensure that more affected groups, including farmers, benefit from the initiative.

The Finance Minister's political secretary, Muhammad Kamil Abdul Munim, said the government continues to listen to grievances from groups affected by rising diesel prices and is identifying ways to assist them.

He said among the measures under consideration are targeted subsidies similar to those implemented under the BUDI MADANI RON95 (BUDI95) programme, as well as expanding the use of fleet cards to other groups who were previously not eligible for the facility, including farmers.

“All these matters are under study, including feedback from farmers, some of whom are not subscribed to the existing scheme but are nonetheless affected.

“The government is comprehensively examining the entire matter to ensure that no party is left behind,” he told reporters after attending an Aidilfitri open house in Gurun near here last night.

He said the successful implementation of the BUDI95 programme, which recorded minimal issues, serves as a key reference in formulating a new approach to expanding the diesel subsidy, with emphasis on a more efficient, simple and seamless rollout.

Meanwhile, Muhammad Kamil said the government is also taking into account current fiscal challenges, as expenditure to cushion rising fuel prices has surged from about RM700 million to RM6 billion.

“This increase reflects the government’s strong commitment to ensuring the people are not severely affected by rising global oil prices, but at the same time, we need to assess our current financial capacity,” he said.

He added that subsidy rationalisation measures, expenditure savings and enforcement efforts to curb leakages have so far enabled the country to absorb the impact of rising global oil prices.

“But if costs continue to rise, I do not think it is appropriate for us to remain in the current position. Instead, we need to make adjustments and shift in line with current economic developments,” he said.

Commenting on ferry services to Langkawi that have also been affected, he said the matter falls under the jurisdiction of the Transport Ministry, which will evaluate any proposals for improvement, including the implications for the tourism sector on the resort island.

-- BERNAMA