FMT:
Don’t U-turn on targeted
diesel subsidies, CAP tells
govt
The Consumers’ Association of Penang urges Putrajaya to persevere with policies that are beneficial in the long run, even if they are unpopular now.
PETALING JAYA: The Consumers’ Association of Penang (CAP) has urged the government to stand firm on its implementation of targeted diesel subsidies, and not to cave in to pressure from certain groups.
CAP president Mohideen Abdul Kader said federal government leaders must persevere with policies that will benefit the country in the long run although they might be unpopular right now.
“Beginning with targeted subsidies for diesel is the right move. Subsidies must be for those in need and not for everyone regardless of their economic status.
“By implementing this rationalisation policy, the government will have at its disposal RM4 billion for economic development and social welfare,” he said in a statement.
Mohideen stressed the importance of monitoring implementation to prevent leakage and abuse, and to ensure that the subsidies reach the intended recipients.
He also suggested a dedicated help desk in the relevant ministry to handle monitoring and address any problems or complaints from affected parties.
Mohideen said the domestic trade and cost of living ministry should likewise monitor the prices of goods and services to prevent profiteering by unscrupulous traders exploiting the removal of the subsidies.
He said that having removed diesel subsidies, Putrajaya should go on to rationalise RON95 petrol subsidies, with the larger savings from this channelled to vulnerable groups to help them manage the increased costs.
The CAP chief said the funds could also be used to build better equipped hospitals and improve healthcare infrastructure, as well as boost public transport.
“This would reduce the number of private cars on the roads, leading to energy savings and reduced environmental pollution.”
On Monday, the price of diesel was raised from RM2.15 per litre to RM3.35, but only in West Malaysia.
The rate is the unsubsidised market price for the commodity, based on the average for May 2024. The diesel price will be reviewed every week.
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