Suspend decision to float diesel prices, MCA veep urges PM

Suspend decision to float diesel prices, MCA veep urges PM

Published: Jun 10, 2024


MCA has urged the government to suspend its decision to float diesel prices to allow time to address any shortcomings in the move.

Its vice-president Wee Jeck Seng said he had received complaints today from first-time applications for the targeted diesel subsidy scheme, with some companies being told they had already been registered for it, raising concerns of potential data misuse.

“With insufficient registration, a significant gap between subsidies and floating prices and the potential for data misuse, I fear many people who deserve aid will be overlooked.

“Therefore, I urge Prime Minister Anwar Ibrahim to suspend this decision immediately,” Wee (above) said in a statement.

Yesterday, the government announced that diesel prices at the pump across Peninsular Malaysia will no longer be subsidised effective today.

Sabah and Sarawak are not affected by the move.

Finance Minister II Amir Hamzah Azizan said the prices would be floated and follow the market rate - which is currently RM3.35 per litre.

The current price for diesel at the pump is RM2.15 per litre, RM1.20 less than the market rate.

Earlier today, the prime minister stood by his decision, saying it was needed to save the country.

"Who wants this targeted subsidy? We must also know that whatever we do, we will be severely criticised with all sorts of slander and lies.

“In fact, we have said that all previous prime ministers had agreed on the targeted subsidy, but there was no political will to implement it because of the risks involved.

“However, to save the country, we have no choice," said Anwar, who is also finance minister.


Many left out

On that note, Wee said Amir himself mentioned that there are about 410,000 private car owners, small farmers and smallholders in the country - but only 60,000 have registered for the Diesel Subsidy Scheme, representing just 14.6 percent of the total.

“The government yesterday announced that starting today, the domestic diesel price would be floated, rising from RM2.15 per litre to RM3.35 per litre, a 55 percent increase, shocking everyone!”

“The difference caused by the sudden floating of diesel prices is as high as RM1.20 per litre. This decision has a disastrous impact on the market,” Wee added.

The MCA leader also questioned the RM200 subsidy amount, saying it was just paltry compared to the diesel price surge.

“Additionally, those applying for the RM200 subsidy must meet stringent conditions and the scheme overlooks some very important sectors,” Wee said.

If the government insists on the decision, Wee suggested that the former look into gradual subsidy removal for diesel instead.

“This will allow domestic diesel prices to rise slowly so that the public and businesses have enough time to adjust and prepare, minimising harm and impact.”


Do it gradually

Echoing Wee’s sentiments, Umno Youth chief Dr Muhamad Akmal Saleh said the sudden removal of the diesel subsidy would affect the economy and rakyat.

Umno Youth chief Dr Muhamad Akmal Saleh


In a statement today, he said the government should consider the possibility that many eligible for the targeted diesel subsidy could have missed their registration.

“As such, the government should consider gradual removal of subsidy considering the economic situation, say remove RM0.20 or 10 percent of it.

“Once we have addressed certain challenges involved and the economic conditions improve, then we can look into removing diesel subsidy at a higher quantum,” Akmal added.