Despite efforts to rationalise diesel subsidies, the government continues to shoulder a substantial burden, amounting to RM10 billion annually, as disclosed by the Finance Ministry in a parliamentary written reply.
Breakdown of Subsidies
According to NST, the ministry revealed that this annual subsidy includes RM4 billion earmarked for the public transport and logistics sectors. Diesel prices are maintained at RM1.88 per litre for 10 types of public transport vehicles and RM2.15 per litre for 23 types of logistics vehicles.
In addition, RM3.3 billion is allocated for diesel users in Sabah and Sarawak, who benefit from the RM2.15 per litre rate. Fishermen receive RM1.2 billion in subsidies, with diesel priced at RM1.65 per litre. Another RM1.8 billion is provided through the cash assistance programmes Budi Individu and Budi Agri-Komoditi.