Malaysia is going through a major problem with subsidised diesel leakages, with a chance of ineligible events nonetheless having fun with the subsidy, in response to finance minister II Datuk Seri Amir Hamzah Azizan.

Citing the instance of subsidised diesel utilization, he stated that earlier than the Covid-19 pandemic, it was round 6.1 billion litres, but it surely had now reached 10.8 billion litres. “That may be a 70% improve. So the place did the subsidy go? For now, we really feel that there’s a excessive chance that the subsidy has shifted to sectors that aren’t eligible for it,” he stated.

“While you purchase diesel from a petroleum station, you pay RM2.15 per litre, however in the event you’re in an organization and never eligible for a diesel subsidy, you must pay round RM3.48 per litre on the industrial fee, so the distinction is critical,” he stated.

He stated that this leakage places a better monetary burden on the nation’s administration, Bernama reviews. “We have to cease this mismanagement. We have to take care of the loopholes when it comes to this leakage, of cash being paid for firms that ought to not obtain subsidies. It ought to go to the individuals, to construct higher faculties, clinics and different important infrastructure,” he defined.

Amir Hamzah added that given the quantity of diesel subsidies given final yr, which was about RM20 billion, the federal government hoped to scale back that by half. The subsidised diesel management system (SKDS) 2.0 for land transport is a part of the hassle to scale back the spend.

The SKDS includes the participation of 5 oil and gasoline companies (Petronas. Shell, Petron, Caltex and BHPetrol). Underneath the programme, land transport firms that function 9 forms of autos can apply to take part within the MySubsidi diesel system, which can utilise a fleet card system. Functions are actually open, with fleet card use set to start on April 1.

The 9 automobile varieties eligible for the programme are basic cargo lorries, lorries transporting bottled drinks, refrigerated and luton lorries in addition to prime movers, flour tankers, water tankers and panelled/window vans.

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