Since last June, the government has reportedly managed to save about RM600 million every month by targeting diesel subsidies to certain groups.
This approach has effectively reduced diesel smuggling, which has dropped by about 25% or almost seven million liters per day.
Commercial diesel sales have increased, indicating that the industry has shifted away from using subsidized fuel.
In addition, the government provides direct cash assistance through the BUDI program, which benefits more than 140,000 individuals and 65,000 agriculture-related beneficiaries, amounting to RM160 million by October.
Eligible beneficiaries, such as small-scale farmers and private diesel vehicle owners, receive RM200 every month, helping them cope with rising fuel prices.
The targeted subsidy plan also includes special assistance for the logistics sector, allowing 23 types of diesel-powered vehicles to continue purchasing fuel at subsidized rates through the fleet card system.
The public transport and fisheries sectors maintain their previous subsidy rates.
The government is also considering a targeted subsidy for RON95 petrol, which could save up to RM8 billion a year by reducing misuse by non-citizens and the wealthy.
These initiatives not only increase economic savings but keep inflation stable, benefiting the wider economy.
