The government has yet to make a decision on the implementation date for targeted diesel subsidies, said the Minister of Domestic Trade and Cost of Living (KPDN) Datuk Armizan Mohd Ali.
He said that, in principle, the government has agreed to implement the retargeting of fuel subsidies this year, as announced by Prime Minister Datuk Seri Anwar Ibrahim last Tuesday. However, he stated that the government will only set the implementation date for the retargeting of diesel subsidies after the Cabinet is satisfied with the targeting mechanism, including the system and determination of the target groups for social assistance.
“…So, as soon as the government refines and strengthens the social assistance mechanism for the targeted groups, I think the government will then announce the implementation date,” he told reporters after attending the Fleet Card Handover Ceremony for the Subsidized Diesel Control System (SKDS) 2.0 here today.
Armizan said the retargeting of diesel subsidies also involves several other ministries, namely the Ministry of Finance, the Ministry of Transport, the Ministry of Agriculture and Food Security, the Ministry of Plantation and Commodities, and the Ministry of Entrepreneur Development and Cooperatives.
He stated that all involved ministries are ready and are just waiting for the government to announce the implementation date for the retargeting of fuel subsidies.
Meanwhile, Armizan said KPDN will implement several approaches to ensure that no parties take advantage of the situation by price gouging controlled items after the diesel price adjustment is enforced.
“KPDN has approaches to address the possibility of certain parties engaging in price gouging of essential items, which we will announce after the government finalizes the date for the diesel subsidy adjustment,” he said.
On May 21, Anwar, in his National Address, announced that the Cabinet had agreed to implement targeted diesel subsidies for users in Peninsular Malaysia, involving 10 types of public transportation vehicles and 23 types of goods transportation vehicles under the SKDS.
According to the Prime Minister, the targeted diesel subsidies do not involve users in Sabah and Sarawak, as the fuel is used for vehicles in almost every household in both states.
In another development, Armizan said that a total of 28,000 land transport companies have registered and received approval under the implementation of SKDS 2.0.
He added that 90,000 fleet cards have also been issued by five major oil companies to eligible transport companies, with 33 types of land transport sector vehicles eligible to receive subsidized diesel under SKDS 2.0.
