KUALA LUMPUR: The implementation of a targeted diesel subsidy initiated in June across Peninsular Malaysia has led to a noticeable reduction in cases of diesel fuel abuse and has resulted in more controlled consumption levels.
According to BERNAMA News Agency, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali highlighted that since the subsidy was put in place, there has been a drop in diesel fuel abuse by 321 cases compared to the 774 cases reported last year. This significant decrease illustrates the positive impact of the targeted subsidy.
Armizan further elaborated that, based on data from Op Tiris, there has been an 84 percent decrease in the consumption or value of diesel-related seized cases. However, he noted an increase of 21 percent in cases related to RON95. He acknowledged that while the subsidy positively affects diesel misuse, the direct impact on the cost of living isn’t substantial, being more influenced by demand and supply dynamics.
During a session at the Dewan Rakyat, Ar
mizan responded to supplementary questions from Datuk Rosol Wahid (PN-Hulu Terengganu) regarding the subsidy’s effectiveness in curbing diesel fuel smuggling and its impact on living costs. Armizan admitted that while the subsidy has been effective, the prices of goods tied to the subsidy are more affected by market forces.
In response to Dr Richard Rapu (GPS-Betong) about the ministry’s efforts in monitoring and enforcing measures to prevent subsidised fuel diversion, particularly in Sabah and Sarawak, Armizan announced an upcoming meeting. The meeting, chaired by Deputy Prime Minister Datuk Seri Fadillah Yusof, is scheduled for December 14 in Kuching, Sarawak, to discuss strategies to tackle subsidy leakage, especially for untargeted diesel subsidies in that region.
Addressing Rosol’s initial query on arrests and seizures related to diesel subsidy abuse from 2022 to the present, Armizan reported a total of 1,617 cases in Peninsular Malaysia, 421 in Sarawak, 141 in Sabah, and 11 in Labuan. The total value
of diesel seizures amounted to RM47 million, with 1,177 arrests made, involving both citizens and non-citizens.