Targeted subsidies for diesel next year, says domestic trade minister

The implementation of targeted subsidies for diesel is expected to begin next year, said Domestic Trade and Cost of Living Minister Salahuddin Ayub.

He said yesterday the National Economic Action Council agreed in a meeting that an integrated database should be prepared to ensure the effectiveness of the implementation of the initiative, adding the discussion involved the domestic trade ministry, the finance ministry, transport ministry and investment, trade and industry ministry.

"All agencies and ministries already 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 to reporters in Kuala Lumpur today.

In February, Deputy Finance Minister Ahmad Maslan was quoted as saying that the government could save up to RM17 billion if the T20 income group was not given petrol, diesel and liquid petroleum gas subsidies.
 
Asked about the implementation of unsubsidised petrol stations in Kelantan following the pilot project in Padang Besar and Wang Kelian in Perlis, Salahuddin said the programme was aimed at curbing the issue of leakage and smuggling of diesel and petrol at the country's borders.

Earlier, Deputy Prime Minister Ahmad Zahid Hamidi said the trade ministry was finalising the implementation of unsubsidised petrol stations in several other states, adding the project under the border economy programme could save the government's oil subsidy allocation, besides providing more revenue to the country through sales tax imposed on foreign vehicles.