Sharp drop in daily diesel retail sales shows fuel subsidy abuse, says KPDN deputy minister
According to Deputy Minister of Domestic Trade and Cost of Living Fuziah Salleh, diesel sales dropped sharply after the government implemented a fuel subsidy rationalization program, showing that fuel subsidies are being widely abused. .
In a post on her Facebook page, she said there has been a significant change in diesel consumption patterns in the country since the implementation of the targeted diesel subsidy on June 10, diesel sales fell by 30%, equivalent to a drop of 8 million liters per day. In contrast, commercial purchases of diesel, sold at market prices, have increased by 4 million liters per day.
Additionally, she said that gas stations near the Malaysian border have seen diesel sales drop by 40%, Star report. “This is a clear sign that smuggling to neighboring countries is a major problem,” she wrote, echoing what Finance Minister II Datuk Seri Amir Hamzah Azizan wrote. said earlier this week.
On June 10, the rationalisation of diesel fuel subsidies saw the retail prices of Euro 5 B10 and B20 diesel in Peninsular Malaysia increase by RM1.20, or 56%, from a subsidy of RM2.15 per litre, to RM3.35 per litre.
Financial support for diesel fuel users is currently distributed through Budi Personal and Budi Agri-Commodities categories through which qualified applicants will receive RM200 cash support every month. Meanwhile, larger scale trucking and logistics operators can apply Subsidized Diesel Control System (SKDS) Programs 1.0 and 2.0, now totaling 33 types of diesel-powered road vehicles.
Looking to sell your car? Sell it with Car.
