KUALA LUMPUR – The Consumers’ Association of Penang (CAP) supports the implementation of a targeted diesel subsidy, believing it would prevent fuel smuggling to neighbouring countries.
CAP president Mohideen Abdul Kader said the targeted subsidy would not negatively impact the B40 group, as the government would likely provide financial assistance to protect them.
“We welcome the implementation of targeted subsidies and it should be welcomed by consumers because targeted subsidies would only benefit those who needed them.
“If Malaysia is to cut fuel subsidies, starting with diesel, she will be able to save about RM4 billion annually.
“With the implementation of targeted subsidies, everyone would be paying the actual price of diesel, except for those who are in the target groups,” he told Scoop.
He highlighted the issue of residents from neighbouring countries benefiting from Malaysia’s subsidised fuel, either by filling their tanks in Malaysia or through smuggled fuel.
“Such activities do not benefit Malaysians, in fact, it means that Malaysians are subsidising their neighbours instead of using the resources for their own benefit,” he said.
CAP suggested that the B40 group could receive financial assistance, like the e-Madani e-Wallet, to shield them from the actual diesel price.
“This proposal could help prevent the targeted diesel subsidy from burdening the lower-income group, and we believe the government is moving in this direction,” he added.
Earlier, Federation of Malaysian Consumers Associations (Fomca) secretary-general and chief executive officer Saravanan Thambirajah urged for the government to impose stricter curbs on smuggling, and leakages along with the implementation of the targeted diesel subsidy.
He emphasised the need for enhanced enforcement through increased human resources and skills to prevent leakages and ensure the programme’s success.
On Tuesday, Prime Minister Datuk Seri Anwar Ibrahim announced the cabinet’s agreement to implement targeted fuel subsidies, starting with diesel, on the peninsula.
The Domestic Trade and Costs of Living Ministry has already begun implementing the diesel fleet card system for commercial vehicles eligible for subsidised diesel. – May 23, 2024