Malaysia

Suspend diesel rationalisation temporarily, says MCA

The party says Malaysians need more time to familiarise and enrol for the Budi Madani diesel subsidy assistance programme.

Updated 2 years ago · Published on 10 Jun 2024 3:47PM

Suspend diesel rationalisation temporarily, says MCA
MCA wants Putrajaya to temporarily suspend the diesel price float to allow Malaysians sufficient time to familiarise and enrol for the Budi Madani diesel subsidy assistance programme. – The Vibes file pic, June 10, 2024.

MCA wants Putrajaya to temporarily suspend the diesel price float to allow Malaysians  sufficient time to familiarise and enrol for the Budi Madani diesel subsidy assistance programme.

The party’s vice president, Wee Jeck Seng, said the suspension will also allow the government to re-evaluate any deficiencies within the Budi Madani initiative.

Beginning June 10, the government ended its blanket diesel subsidies, allowing diesel to be sold at market prices. It said this would improve the country’s finances.

However, a targeted subsidy is still given under the Budi Madani scheme where private diesel vehicle owners, small-scale farmers and commodity growers will receive RM200 monthly cash assistance.

Under the diesel rationalisation, which is only effective in Peninsular Malaysia, the new unsubsidised diesel price is RM3.55 per litre, an escalation by 55% from RM2.15 previously

“The whopping ascent by RM1.20 per litre has inflicted widespread shock and holds enormous repercussions in the market,” said Wee in a statement.

He said that the monthly RM200 Budi Madani diesel subsidy assistance is not only insignificant but also negligible compared to the current diesel price hike.

People applying for this RM200 subsidy are confronted with various stringent conditions, and the scheme has also overlooked certain crucial areas, added the Tanjung Piai member of Parliament.

“Complaints received as of today also indicate the potential of data misuse. During the first online application for diesel subsidy, individuals were informed that their company's information was already on record.

“Given the insufficient registration, coupled with the significant disparity between subsidised and floating diesel prices, combined with the possibility of data misuse, in such an uncertain situation, concerns grow that many deserving individuals will be overlooked.

“Therefore, we urge the Prime Minister and Finance Minister, Anwar Ibrahim, to immediately suspend this decision,” said Wee.

He added that if the government insisted on executing the diesel price float, the government must then consider adopting a gradual reduction of subsidy in phases.

He said this would allow domestic diesel prices to climb incrementally, providing citizens and businesses with sufficient time to adapt and make appropriate preparations to minimise harm and impact.

For context, Minister of Finance II Amir Hamzah Azizan revealed last week that there are approximately 410,000 private vehicle owners, farmers, and smallholders in the country.

However, only 60,000 have currently registered for the Budi Madani diesel subsidy scheme, accounting for a mere 14.6% of the total. – June 10, 2024.

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