Date of diesel subsidy rationalisation will be announced when “the sequencing is correct”, says Rafizi

KUALA LUMPUR: The government has already decided on the date for the retargeting of the diesel subsidy rationalisation and it will be this year, says Rafizi Ramli.

However, the Economy Minister said it would not be revealed yet for fear of knock-on effects on inflation and possible hoarding of the supply.

He said the government’s plan to retarget the diesel subsidy is on track and the exact dates will be announced once the government has decided that “the sequencing is correct”.

Rafizi was met by reporters after launching the Oil and Gas Services Equipment Census 2024, conducted by the Department of Statistics Malaysia (DOSM), here on Thursday (June 6).

The minister pointed out that the announcement of the diesel subsidy retargeting was a precursor to managing the supply as private vehicles using diesel were not as wide as RON95.

He also said the data of those receiving assistance under Budi Madani cash aid programme would be cross-checked with that in Central Database Hub (Padu) to ensure only the deserving would benefit.

“The plan for diesel subsidy retargeting is still on track. The biggest parameter is the deficit target – 4.3% this year. It boils down to dollars and cents and we are guided.

“When Padu was conceptualised, subsidy retargeting was only one of the key levers.

“Data from Budi Madani will be cross-checked with Padu but Padu is very much focused on household basis.

“The decision for the retargeting of diesel subsidy is for individuals with privately owned vehicles,” he said.

Earlier, during the event, oil and gas services equipment industry players attended a forum where they discussed the need for better levers from the government to assist the companies.

DOSM chief statistician Datuk Seri Mohd Uzir Mahidin said the 2024 OGSE Census can be used to plan development programmes for the industry.

“This will strengthen the capability of local companies in providing services and equipment to the downstream oil and gas industry, as well as pushing these companies to compete globally,” said Mohd Uzir.

Malaysian Oil and Gas Services Council exco Sharifah Zaida Nurlisha Syed Ibrahim said she had met four prime ministers to push for more to be done for the industry and these efforts were now being recognised.

“We must continue to be resilient in the face of climate change. How do we do this? We have to go to the government and show them the data. We will be better equipped,” said Sharifah Zaida.