Budget 2024: Govt to reduce diesel subsidy in phases to tackle leakage issue

Diesel gauge. — DayakDaily. com file pic. // Photo: Pixabay

By Ling Hui

KUCHING, Oct 13: The Malaysian government will reduce subsidies on diesel except for selected users such as logistics companies.

Prime Minister Datuk Seri Anwar Ibrahim said diesel subsidies will be rationalised in phases to reduce subsidy leakage and reduce the impact on the price of goods.

“The current subsidised diesel price is set at RM2.15 compared to the market price of RM3.75 per litre.

“This means the Government bears RM1.60 per litre of diesel or around RM1.5 billion in total,” he said when tabling the Budget 2024 in Parliament today.

According to consumption data, he said, subsidised diesel sales have increased by up to 40 per cent since 2019, while the number of vehicles using diesel only increased by less than three per cent.

He indicated that severe smuggling activities could happen due to the price of diesel in Malaysia being too low.

The Budget 2024, themed ‘Madani Economy: Empowering the People’, allocates RM393.8 billion, comprising RM303.8 billion as operating expenditure and RM90 billion as development expenditure, including RM2 billion in contingency savings. — DayakDaily