Cabinet agrees in principle to rationalize diesel subsidy, says Armizan

The Cabinet had agreed in principle to rationalize diesel subsidies this year, as stated by Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali.

He mentioned that the rationalization of diesel subsidies was slated for 2024 although the exact date was yet to be confirmed.

“The Cabinet had agreed in principle to rationalize diesel subsidies this year. From then, the government was ironing out the details of how social aid was given to target groups.

“Only once the Cabinet was pleased with how social aid was handed out, we would give a date,” Armizan said, reported The Star.

He said this during a press conference today, where he distributed fleet cards to land transport companies as part of the Subsidised Diesel Control System (SKDS) 2.0 project.

Armizan added that the decision to rationalize diesel subsidies was not made impulsively, stating that it had already been announced the previous year.

He said that it was part of the government’s reforms, to ensure subsidies reached those in need.

“The government was not abolishing subsidies, but rather rationalizing them,” Armizan added.

Prime Minister Datuk Seri Anwar Ibrahim announced the rationalization of diesel subsidies for the peninsula on Tuesday, May 21st.

Anwar highlighted that the measure would yield approximately RM4 billion in annual government savings.

Additionally, to mitigate potential spikes in the cost of goods and services, subsidies would be extended to traders utilizing diesel-powered commercial vehicles.

This encompassed 10 public transportation vehicles and 23 goods transport vehicles under the SKDS program, encompassing bus and taxi operators.

Anwar also underscored the continuation of diesel subsidies for specific categories of fishermen.

Furthermore, cash assistance would be allocated to eligible individuals, including small traders and farmers who possessed private diesel-powered vehicles.