Kuala lumpur: Savings generated from the targeted diesel subsidy mechanism are not being retained solely as a fiscal surplus, but are instead utilised to strengthen targeted assistance programmes, according to the Ministry of Finance (MOF).
According to BERNAMA News Agency, the ministry stated that the savings have been used to bolster programmes such as the Sumbangan Tunai Rahmah (STR), Sumbangan Asas Rahmah (SARA), and various other initiatives. These efforts are aimed at supporting ongoing price monitoring and enforcement to ensure that subsidies and assistance reach their intended recipients, thereby minimising leakages.
The MOF emphasized that the government will continue to oversee the implementation of the BUDI MADANI Programme, making necessary improvements to ensure assistance is distributed fairly, effectively, and in a targeted manner to those truly in need. This statement was made in response to a question posed by Senator Mohd Hasbie Muda regarding the government's follow-up actions after setting the subsidised diesel price at RM2.10 per litre, with the goal of ensuring that reduced operating costs lead to lower prices for goods and services.
The ministry further highlighted that the targeted diesel subsidy, implemented under the revamped BUDI MADANI Diesel (Budi Diesel) programme, has achieved two significant outcomes. It ensures the continued availability of diesel supply in the domestic market while allowing eligible Malaysians to purchase diesel at a lower price.
The ministry also addressed concerns from Senator Datuk Nelson W. Angang about the potential impact of the targeted diesel subsidy on the logistics sector and rural communities in Sabah and Sarawak, as well as the national economic performance amidst global geopolitical pressures. The revamped subsidy is projected to save up to RM2 billion annually, facilitating a reduction in the subsidised diesel price from RM2.15 to RM2.10 per litre.
On June 22, the government announced the standardisation of diesel prices and subsidy mechanisms nationwide, set to take effect on July 1, 2026. This initiative will allow eligible Malaysians to continue purchasing subsidised diesel at RM2.10 per litre through the Budi Diesel programme.