KUALA LUMPUR: The Cabinet has agreed to implement targeted subsidies on fuel starting with diesel, which is projected to save the country RM4 billion annually, said Prime Minister Datuk Seri Anwar Ibrahim today.
Anwar said the targeted fuel subsidies will start with diesel.
He said the targeted diesel subsidy would only apply to users in Peninsular Malaysia and not those in Sabah and Sarawak.
"Those that will not benefit from the subsidy rationalisation are the T20 and foreigners," said Anwar.
To mitigate sudden increases in the prices of goods and services, the government will continue providing diesel subsidies to traders who utilise diesel-based commercial vehicles.
"This includes 10 types of public transport vehicles and 23 types of goods transport vehicles under the Subsidised Diesel Control System (SKDS), including bus operators and taxis.
"Additionally, certain categories of fishermen will also receive diesel subsidies," he said in his special address tonight, which aired live over all local media channels.
Anwar emphasised the government's commitment to preserving the people's welfare amidst rising living costs.
"The government has agreed to provide cash assistance to individuals owning eligible diesel vehicles, including small farmers, rice farmers, and small traders. This cash assistance will not benefit the T20 group."
Anwar said the targeted fuel subsidies would save the government approximately RM4 billion annually.
He stressed that; "It's important to note that targeted fuel subsidies are not a complete withdrawal, as suggested by some.
"Rather, they are necessary to restructure the public financial framework. Similar to targeted water and electricity subsidies, the majority of the population will not be affected by this adjustment and will continue benefiting from government subsidies."
