GENERAL

DIESEL SUBSIDY RATIONALISATION HAVING POSITIVE IMPACT - AMIR HAMZAH

24/06/2024 06:23 PM

KUALA LUMPUR, June 24 (Bernama) -- Finance Minister II Datuk Seri Amir Hamzah Azizan said the diesel subsidy rationalisation programme has produced an encouraging impact and is progressing as planned.

He told the Dewan Rakyat today that this is based on the trend of increasing commercial diesel sales, a positive sign that the leakage of subsidised diesel has decreased.

"For everyone's information, following the implementation of targeted diesel subsidies, records show that the volume of retail diesel sales at petrol stations has decreased by nearly eight million litres per day or 30 per cent in the first week after the announcement of the diesel price float compared to the week before.

"During the same period, commercial diesel sales increased by four million litres per day, signalling that some of the subsidised retail diesel consumed previously was used by the industrial sector, which should be purchasing diesel at market prices," he said during the Minister's Information Session on the Implementation of Diesel Subsidy Rationalisation.

He said according to information received from one of the oil companies, diesel sales at the border showed a 40 per cent decrease.

"This confirms that there were indeed diesel smuggling activities to our neighbouring countries," he said, adding that enforcement agencies are actively collaborating and organising various operations to curb smuggling.

These bodies are responsible for curbing any elements that threaten the stability of the supply of goods and services and preventing profiteering in the market.

He said the Domestic Trade and Cost of Living Ministry launched Ops Tiris on March 1, 2023 to curb siphoning activities involving subsidised diesel.

Last year, 877 cases were handled under Ops Tiris 1.0 and 2.0 involving the seizure of approximately 6.4 million litres of diesel with an estimated value of over RM14.2 million. 

These seizures included assets and equipment such as vehicles, hoses and diesel oil suction devices worth about RM42.1 million.

These operations resulted in the arrest of 667 individuals suspected of being involved in the misappropriation and leakage of national subsidies, he said. 

He said that on Jan 1, 2024, the operations continued under the Ops Tiris 3.0 framework, and as of June 22, a total of 570 cases had been handled involving the seizure of more than 5.1 million litres of diesel worth almost RM12 million and assets and equipment worth RM46 million, as well as the arrest of 275 individuals.

-- BERNAMA


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