Anwar: Targeted Diesel Subsidy Unavoidable To Save The Country

During the Prime Minister's Department's monthly meeting earlier today, PM Datuk Seri Anwar Ibrahim highlighted the importance of implementing targeted diesel subsidies to protect the nation's interests, despite their unpopularity. He also emphasised the unavoidability of adopting such dramatic measures, notwithstanding the potential for harsh criticism.

He went on to say that previous prime ministers had agreed on the importance of targeted subsidies but lacked the political will to execute them due to the consequences to their political careers. "However, to save the country, we have no choice," added Anwar, who is also the Finance Minister.

Datuk Seri Amir Hamzah Azizan, Finance Minister 2, announced yesterday that starting today, the price of diesel at all retail stations in Peninsular Malaysia will be RM3.35 per litre, up RM1.20 from the subsidized market price based on the Automatic Pricing Mechanism formula's average diesel price in May 2024.

Amir Hamzah had also explained that the diesel price float and targeted subsidies would yield annual savings of RM4 billion, bolstering the country's financial stability in the long term which would benefit the “rakyat”.

This technique will also ensure that fuel subsidies go only to individuals who are eligible, preventing leakages that have historically resulted in considerable losses to the nation. However, for the time being, this subsidy rationalisation will only apply to the peninsula and will not affect Sabah or Sarawak.