KUALA LUMPUR – The government is expected to finalise its plans for targeted diesel subsidies sometime this year, said Deputy Finance Minister Datuk Seri Ahmad Maslan (Pontian-BN).
Addressing the Dewan Rakyat today, Ahmad said that the control mechanism for targeted diesel subsidies is currently being worked on and should be completed between June and August.
He noted, however, that targeted fuel subsidies for petrol will not be implemented anytime soon, saying: “The government does not see yet when (targeted subsidies) for petrol will be carried out.”
“A special task force has been formed under the Finance Ministry to work with other ministries, departments and agencies to study the necessity and feasibility of targeted subsidies.
“The group will identify methods (for targeted subsidies) that are cost- and time-effective while incurring the least financial implication on the government,” he added.
He also said that while the government has not yet determined the criteria for the targeted subsidies, efforts are underway to establish a comprehensive data centre on the matter.
Last month, Ahmad told the lower House that 35% of subsidies for petrol, diesel and liquefied petroleum gas (LPG) last year were enjoyed by individuals in the T20 income bracket.
According to Ahmad, only 24% of the government subsidies for petrol, diesel, and LPG were utilised by those in the lower income bracket.
The remaining 41% were enjoyed by the M40 group, he added. – The Vibes, March 27, 2023
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