Government Reviewing Expansion of Diesel Subsidy to Ensure No Group Is Left Behind
SUNGAI PETANI: The government is undertaking a comprehensive review of proposals to expand the diesel subsidy programme, aiming to ensure that more affected groups, including farmers, are not excluded from assistance. Political Secretary to the Finance Minister, Muhammad Kamil Abdul Munim, said the initiative is focused on delivering a more inclusive and targeted support system.
He noted that the government has been attentive to concerns raised by farmers and other groups impacted by rising diesel prices, particularly those who have yet to benefit from existing subsidy schemes. As a result, various mechanisms are being evaluated to ensure fair and effective distribution of assistance.
Among the options being considered are targeted subsidy models similar to the BUDI MADANI RON95 (BUDI95) programme, as well as expanding the use of fleet cards to additional groups that were previously not covered, including farmers.
He explained that some farmers have not enrolled in current schemes but continue to feel the financial strain of higher fuel costs. The government is therefore working to design a solution that includes these groups and prevents any segment of society from being overlooked.
“We are examining all aspects to ensure that no group is left behind when the new policy is introduced,” he told reporters after attending a community event in Gurun.
At the same time, the successful implementation of BUDI95, which recorded minimal operational issues, is being used as a key reference point in shaping the new diesel subsidy framework. The emphasis will be on efficiency, accessibility and smooth execution.
However, fiscal constraints remain a significant consideration. He revealed that government spending to cushion the impact of global oil price increases has surged from approximately RM700 million to RM6 billion, reflecting a substantial commitment to protecting the public.
Despite this, he stressed that the government must carefully assess its financial capacity. If costs continue to escalate, adjustments to the current subsidy approach may become necessary in line with evolving economic conditions.
He added that previous measures, including subsidy rationalisation, expenditure control and stricter enforcement to curb leakages, have helped Malaysia manage the impact of rising global oil prices so far.
On a related matter, issues involving ferry services to Langkawi fall under the jurisdiction of the Ministry of Transport Malaysia, which will evaluate potential improvements, including implications for the island’s tourism sector.
Overall, the government remains committed to refining the diesel subsidy system to make it more inclusive while maintaining fiscal sustainability and safeguarding public welfare.
-wilayah.com.my
