KUALA LUMPUR, July 2 – Early signs indicate that the recent diesel subsidy rationalisation programme is effectively reducing leakages, said Finance Minister II, Datuk Seri Amir Hamzah Azizan.
The minister reported a significant decrease in diesel retail sales since the retargeting began.
He noted that, when comparing sales before and after the subsidy retargeting, average daily sales at petrol stations in Peninsular Malaysia have fallen by more than 30 per cent, with stations in border areas experiencing reductions of 40 to 50 per cent.
“This is a clear indicator of reduced smuggling. By fixing the retail price to the market level without subsidies, we reduce the incentive to smuggle.
“This cannot be achieved if the government implements retail price increases in small instalments, as it will not address the price gap,“ he said during a question-and-answer session in the Dewan Rakyat on Tuesday.
