Syed Saddiq slams govt over low uptake of diesel subsidies

Muar MP Syed Saddiq Syed Abdul Rahman said people from lower- and middle-income groups have yet to receive the Budi Madani cash aid. (Facebook pic)

PETALING JAYA: Muar MP Syed Saddiq Syed Abdul Rahman has criticised the government for its “hasty” implementation of targeted diesel subsidies, claiming that many people are missing out.

As of yesterday, the government said 226,957 transport vehicles from 75,541 companies have been approved for diesel subsidies under the subsidised diesel control system (SKDS).

Meanwhile, last Wednesday, it was reported that 100,000 applications have been approved for the Budi Madani cash aid programme.

“These are way off the government’s promised numbers. The consequence will be that the cost of living will increase as supply chains are affected.

“Those from the lower- and middle-income groups have yet to receive the Budi Madani cash aid,” he said in a press conference at the Parliament building today.

The government previously stated that approximately 700,000 vehicle owners would qualify for Budi Madani, comprising 300,000 private vehicles and 400,000 small-scale farmers. A further 700,000 commercial vehicles are eligible for SKDS.

Syed Saddiq attributed the low uptake so far to insufficient time for owners of diesel vehicles to prepare.

He said the government should have adopted a similar approach to its central database hub (Padu) rollout, where people were given three months to register, while the government campaigned to raise public awareness.

Syed Saddiq also labelled the government’s targeted subsidy approach “inconsistent”, pointing out several unresolved issues such as the classification of luxury cars and the limits on fleet cards.

“To date, we are still waiting (for clarification on the fleet card limit), how many litres, or if it is based solely on the number of vehicles,” he said.

Onus on companies to apply, says Loke

Meanwhile, speaking at the launch of Batik Air’s new private terminal transfer service, transport minister Loke Siew Fook said that owners of some 180,000 heavy vehicles have yet to apply for SKDS.

“We have provided ample opportunities for registration. Those eligible under SKDS 2.0 must register to receive the subsidy. The subsidy will remain for fleet card holders,” Loke said.

He said it is a company’s responsibility to register for the SKDS and it should not blame the government if it fails to do so.

The government lifted the diesel subsidy in Peninsular Malaysia on June 3, with diesel prices rising from RM2.15 to RM3.35 per litre. The retail price of diesel fuel will be reviewed every week according to market forces.

According to finance ministry figures, consumption of subsidised diesel increased sharply from 6.1 billion litres in 2019 to 10.8 billion litres in 2023, even though the number of diesel vehicles did not increase significantly.

As a result, diesel subsidies rose 10-fold from RM1.4 billion in 2019 to more than RM14.3 billion in 2023.