Trade and Cost of Living (KPDN) Minister Datuk Seri Salahuddin Ayub said the implementation of targeted subsidies for diesel is expected to start in 2024.
He said the National Economic Action Council (MTEN) agreed in a meeting on Wednesday that an integrated database should be prepared to ensure the effectiveness of its implementation, Bernama report.
The integrated database is expected to incorporate as much socioeconomic information about each household as possible to assist the government in finalizing subsidies. “All agencies and ministries have their own databases. We just need to coordinate and make sure they are accurate and effective when it (targeted subsidies for diesel) is implemented,” he said.
This follows a statement made by prime minister Datuk Seri Anwar Ibrahim earlier this week regarding the government’s plan to refine targeted subsidies for diesel engines. This will also include diesel-powered vehicles used in the freight sector, he said, and the subsidy will be channeled through a fleet card system.
Anwar says the system will help the government monitor diesel consumption and also prevent leaks. He said there had been a significant increase in fuel consumption over the past three years that was disproportionate to the number of new diesel vehicles registered, prompting the government to question whether the fuel was being smuggled.
Back in March, Deputy Finance Minister Datuk Seri Ahmad Maslan said that Putrajaya’s planned targeted fuel subsidy program will start with diesel enginegasoline RON 95 will be introduced later.
