Economy Minister Rafizi Ramli has clarified that the government is still covering the cost of diesel subsidies for eligible sectors, despite the price of diesel being floated. Speaking on the Yang Bakar Menteri (YBM) podcast, Rafizi explained that subsidies are still provided to essential sectors like fisheries, public transport, and logistics, although private users are now subject to market prices.
According to Bernama, Rafizi noted that the government has not fully removed diesel subsidies but has adopted a targeted approach, ensuring that specific sectors continue to benefit. The retail price of diesel in Peninsular Malaysia was set at RM3.35 per litre on June 10, 2024, while in Sabah, Sarawak, and Labuan, it remained at RM2.15 per litre, with prices fluctuating based on market conditions.
Rafizi also highlighted that any extra funds generated from the difference between the market price and the set price are used to finance subsidy payments, especially for public transport and other designated sectors. Additionally, the excess funds are partially used to support the distribution of BUDI MADANI cash assistance.
He stressed that fluctuations in weekly diesel prices impact government spending on subsidies, but the overall goal remains to ensure that sectors essential to the economy continue receiving support.
