Izwan Abdullah
PENAMPANG: The rationalisation of diesel and electricity subsidies will save the government some RM8 billion a year, says Prime Minister Datuk Seri Anwar Ibrahim.
He said the rationalisation of electricity tariffs last year translates into annual savings of RM4.5 billion, while the removal of diesel subsidies will save the government some RM4 billion per year.
Previously, in announcing the rationalisation of subsidies, Anwar said the money saved on subsidies would be used for targetted aid.
Subsidies will still be provided to companies transporting goods and public transport providers to reduce the impact on the people.
"All this while, this RM8 billion in subsidies was given to the rich and foreigners," he said at the closing of the state-level Kaamaatan festival at Hongkod Koisaan here.
"I say this because the issue is being politicised by certain parties. What is the meaning of giving subsidies to the rich and foreigners?"
Anwar, who is also Finance Minister, also said that Sabah and Sarawak were excluded from the diesel rationalisation exercise due to the needs of the people.
The use of diesel is more widespread in Sabah and Sarawak where more challenging terrains require the use of four-wheel drives.
