PUTRAJAYA, March 7 – The country is facing a serious problem with subsidised diesel leakages, with a possibility of ineligible parties still enjoying the subsidy, said Finance Minister II Datuk Seri Amir Hamzah Azizan.
Citing the example of subsidised diesel usage in the country, he said it was around 6.1 billion litres before the COVID-19 pandemic, and now it has reached 10.8 billion litres.
“That is a 70 per cent increase… so where did the subsidy go? For now, we feel that there is a high possibility that the subsidy has shifted to sectors that are not eligible for it.
“When you buy diesel from a petrol station, you will pay RM2.15 per litre but if you have to pay the commercial rate, if you’re in a company and not eligible for diesel subsidy, you have to pay around RM3.48 per liter… so the difference is significant,” he said at the monthly gathering of the Ministry of Domestic Trade and Cost of Living (KPDN) on Thursday.
Also present was Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali.
On the possibility of the subsidy not ending up with its intended target, he said this results in a greater financial burden on the country’s management.
“We need to stop this mismanagement. Our money is being paid to companies that should not receive subsidies. It should go to the people… to build better schools, clinics and other essential infrastructure for the people.
“We need to deal with the loopholes in terms of this leakage. Looking at the amount of diesel subsidies given last year, it was about RM20 billion. So if we can cut it in half, Alhamdulillah,” he said.
