THE government will continue to tackle the cost of living problems in a more proactive and effective manner to soften the blow on people’s daily lives, said Prime Minister Datuk Seri Anwar Ibrahim today.
He said that the government was not doing away with subsidies but instead was ensuring the management of subsidies is more efficient and will reach those who really need it.
“The government still has to bear around RM7 billion for diesel-related subsidies in Peninsular Malaysia,” he said in a statement today.
The government floated the diesel price on June 10 in Peninsular Malaysia but implemented targeted assistance for the eligible sectors and individuals through the Budi Madani cash assistance.
Following the removal of the subsidy for diesel, several sectors had indicated that they would be forced to increase transportation costs, which in turn will impact the prices of essential goods.
In his statement, Anwar said that the main purpose of the diesel subsidy rationalisation was to ensure there are no more wastages and that savings can be channeled back to the people.
“The savings from this subsidy rationalisation will be returned to the people in the form of education, health, public transport and other sectors that have the greatest impact on the people,” he said.
He also said that the government had to act on the rampant diesel smuggling, which was costing the nation and its people.
He noted the government has seized a total of 6,441,118 litres of diesel oil estimated at RM14,208,824.00 as of December 31, 2023 under the Ops Tiris which started on March 1, 2023.
He added that Ops Tiris 3.0 was expanded to stop the smuggling of other controlled items such as refined white sugar (coarse and refined), cooking oil in 1kg poly bags, RON95 petrol and liquid petroleum gas.
As of June 14, 2024, a total of RM12,956,089.96 worth of controlled goods have been seized, with diesel being the most smuggled and misappropriated controlled good, Anwar said.
“The government will remain committed to dealing with diesel smuggling while trying to balance it with the supply and cost of living of the people,” he said.
Anwar, who is also the finance minister, said the government maintains subsidies for cooking oil, pointing out that the prices of bottled pure palm cooking oil is at RM6.90 (1kg), RM13.30 (2kg), RM19.60 (3kg) and RM30.90 (5kg) even though world crude palm oil prices rose above the threshold price of RM3,890/mt.
He also announced that the retail price of eggs will be reduced from today. – June 17, 2024.
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