Malaysia is going through a significant issue with subsidised diesel leakages, with a chance of ineligible events nonetheless having fun with the subsidy, in accordance with 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, however it had now reached 10.8 billion litres. “That could 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.
“If you purchase diesel from a petroleum station, you pay RM2.15 per litre, however in case you’re in an organization and never eligible for a diesel subsidy, it’s important to 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 studies. “We have to cease this mismanagement. We have to cope with the loopholes by way of 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 trouble to scale back the spend.
The SKDS includes the participation of 5 oil and gasoline corporations (Petronas. Shell, Petron, Caltex and BHPetrol). Beneath the programme, land transport firms that function 9 kinds of autos can apply to take part within the MySubsidi diesel system, which is able to utilise a fleet card system. Purposes at the moment are open, with fleet card use set to start on April 1.
The 9 car varieties eligible for the programme are common 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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