RM17 bil saved if T20 not given fuel subsidy, says Ahmad Maslan
28 Feb 2023 02:15pm
Deputy Finance Minister Datuk Seri Ahmad Maslan said in 2022, consumption of the three types of fuel in the lowest income group (B40) was only 24 per cent, while the middle-income group (M40) was 41 per cent and T20 was at 35 per cent. -Bernama pic
Deputy Finance Minister Datuk Seri Ahmad Maslan said in 2022, consumption of the three types of fuel in the lowest income group (B40) was only 24 per cent, while the middle-income group (M40) was 41 per cent and T20 was at 35 per cent.
"In terms of data, the total is RM50.8 billion and if multiplied by 35 per cent used by T20 , the value is RM17 billion.
"If T20 was not given petrol, diesel and LPG subsidy, the amount saved is between RM15 billion and RM17 billion, so Honourable Members please imagine how many other items we can used to assist the people in various matters in 26 ministries,” he said during question and answer session at Dewan Rakyat.
He was replying to a supplementary question by Datuk Ahmad Amzad Hashim (PN-Kuala Terengganu) who wanted to know if the government's move to use an integrated database in the targeted subsidy mechanism is effective to avoid leakage, and how those in the M40 group who drop out of the B40 group in the city will receive the benefit of the targeted subsidy.
Ahmad said the total subsidy given for diesel in 2018-2019 was RM5.8 billion to RM6.1 billion, but the subsidy increased to RM8.4 billion due to its increased use.
Meanwhile, he said the government will continue to monitor petrol and diesel smuggling activities in an integrated manner with relevant agencies including the Royal Malaysian Customs Department, the Malaysian Maritime Enforcement Agency and the Royal Malaysia Police.
He said, the price of RON95 in Malaysia is much cheaper which is RM2.05 per litre compared to neighbouring countries such as Singapore (RM8.51 per litre), Thailand (RM5.71 per litre) and Indonesia (RM3.78 per litre).
Ahmad was replying to a supplementary question by Aminolhuda Hassan (PH-Sri Gading) regarding the measures taken by the government against individuals who smuggle fuel. -Bernama
