PUTRAJAYA should consider adopting a gradual reduction of diesel subsidies in phases instead of implementing a diesel price float to provide citizens and businesses with sufficient time to adapt and make appropriate preparations to minimise harm and impact.
MCA vice president Datuk Seri Dr Wee Jeck Seng said this in light of the government’s move to cut diesel subsidies and float retail prices to the market rate of RM3.35 per litre, an increase of about 55% from RM2.15, starting today (June 10).
He said the government should temporarily suspend the floating diesel price mechanism to allow citizens ample time to familiarise and enrol for the Budi Madani diesel subsidy assistance programme while simultaneously enabling the government to re-evaluate any deficiencies within the initiative.
Wee rationalised that just two days ago Finance Minister II Datuk Seri Amir Hamzah Azizan revealed that there are approximately 410,000 private vehicle owners, farmers and smallholders in the country.
However, only 60,000 have currently registered for the Budi Madani diesel subsidy scheme, accounting for a mere 14.6% of the total.
“The whopping ascent by RM1.20 per litre of diesel has inflicted widespread shock and holds enormous repercussions in the market,” Wee remarked in a statement today.
“The monthly RM200 Budi Madani diesel subsidy assistance is not only insignificant but also negligible compared to the current diesel price hike.”
Wee said citizens applying for this RM200 subsidy are further confronted with various stringent conditions, and the scheme has also overlooked certain crucial areas.
He noted that complaints received as of today also indicate the potential of data misuse, and during the first online application for diesel subsidy, individuals were informed that their company’s information was already on record.
“Given the insufficient registration, coupled with the significant disparity between subsidised and floating diesel prices, combined with the possibility of data misuse, in such an uncertain situation, concerns grow that many deserving individuals will be overlooked,” he asserted.
Necessary to save the country
Defending the move, Prime Minister Datuk Seri Anwar Ibrahim said today the decision to implement targeted diesel subsidy is necessary to save the country.
Speaking at a monthly assembly with staff of the Prime Minister’s Department in Putrajaya, Anwar said action must be taken even though it is recognised as an unpopular measure.
“Who wants this targeted subsidy? We must also know that whatever we do, we will be severely criticised with all sorts of slander and lies.
“In fact, we have said that all prime ministers before this had agreed on the targeted subsidy, but there was no political will to implement it because of the risks involved. However, to save the country, we have no choice,” he was reported as saying.
The Finance Ministry had also released an infographic via its social media accounts that compare the country’s new RM3.35 per litre rate with the diesel pump price of Malaysia’s Southeast Asian neighbours.
Kerajaan telah menetapkan harga runcit bahan api diesel pada RM3.35 seliter bermula pada jam 12 tengah malam pada hari Isnin, 10 Jun 2024 di stesen-stesen minyak seluruh Semenanjung Malaysia. pic.twitter.com/hF7aYK3a5y
— Ministry of Finance🇲🇾 (@MOFmalaysia) June 9, 2024
According to the infographic, even with the removal of blanket subsidy in favour of targeted cash handouts, the country’s new diesel pump price is cheaper than Singapore (RM8.79) , Myanmar (RM5.40), Philippines (RM4.75), Cambodia (RM4.64), Laos (RM4.56), Indonesia (RM4.43), Thailand (RM4.24) and Vietnam (RM3.69).
The only country where diesel is sold for lower than RM3.35 is Brunei, the tiny oil-rich sultanate of just 470,910 people. There, the diesel pump price is RM1.09 per litre. – June 10, 2024
Main pic credit: The Star
