Gurun: The government is conducting a comprehensive study of proposals to expand the diesel subsidy scheme to ensure that more affected groups, including farmers, benefit from the initiative. The Finance Minister's political secretary, Muhammad Kamil Abdul Munim, emphasized that the government is attentive to the grievances of groups impacted by rising diesel prices and is exploring ways to assist them.
According to BERNAMA News Agency, among the measures under consideration are targeted subsidies similar to those implemented under the BUDI MADANI RON95 (BUDI95) programme. There is also a proposal to extend the use of fleet cards to other groups previously ineligible for this facility, including farmers. Muhammad Kamil noted that the government is evaluating all aspects of the issue, including feedback from farmers who are not currently subscribed to the scheme but still face challenges due to rising costs.
The successful implementation of the BUDI95 programme, which encountered minimal issues, serves as a model for developing a new approach to expanding the diesel subsidy. The focus is on a more efficient, straightforward, and seamless rollout. Muhammad Kamil highlighted that the government is also considering the current fiscal challenges, as the expenditure to mitigate rising fuel prices has increased significantly from approximately RM700 million to RM6 billion.
This surge in expenditure underscores the government's commitment to cushioning the impact of rising global oil prices on the populace, while also necessitating a review of financial capabilities. Subsidy rationalisation, expenditure savings, and enforcement measures to prevent leakages have been instrumental in absorbing the effects of global oil price increases.
However, if costs continue to escalate, Muhammad Kamil suggested that adjustments are necessary to align with current economic developments. He also addressed the issue of ferry services to Langkawi, which have been affected, stating that the Transport Ministry will assess any proposals for improvements, considering the implications for the tourism sector on the resort island.