KUALA LUMPUR: The implementation of the Budi Madani Diesel (Budi Diesel) has successfully curbed fuel leakage compared with the previous mechanism.
Deputy Finance Minister Liew Chin Tong said this was reflected in a 10 per cent decline in diesel consumption in Sabah last month, despite recipients in the region being given an additional monthly quota of 100 litres.
He said the decline was among the indications that the targeted subsidy mechanism could curb leakage, while ensuring that the public continued to have access to diesel and RON95 at subsidised prices.
"Whether it helps to increase productivity is a separate question. However, the government wants to ensure that there is no fuel leakage, so that the public can continue to enjoy supplies at lower prices," he said in Dewan Rakyat today.
He was responding to a supplementary question from Salamiah Mohd Nor (PN-Temerloh) on the assessment of the effectiveness of targeted fuel subsidies and whether the policy had helped improve productivity, particularly for industrial players.
Meanwhile, in reply to the initial question, Liew said additional eligibility under Budi Diesel was introduced after the government took into account the widespread use of pickup trucks and jeeps as primary vehicles, particularly in Sabah and Sarawak, where many residents rely on these vehicles for their daily activities.
As of Oct 12, a total of 52,133 diesel pickup truck and jeep owners in Sabah had qualified for the extra 100 litres a month under the scheme.
He said the government also improved the Budi Diesel mechanism from Sept 16 by allowing eligibility to be transferred to the actual users of diesel vehicles.
"Eligible registered owners can now transfer their eligibility to any Malaysian citizen with a valid MyKad who qualifies for BUDI95 and is the actual user of the vehicle.
"For individuals who own more than one private diesel vehicle, eligibility can also be transferred to a maximum of three other people, subject to the number of diesel vehicles owned and eligibility checks.
Eligible registered owners of pickup trucks and jeeps may also apply for the additional 100-litre allocation before transferring their entitlement, subject to the scheme's conditions.
As of Oct 12, the government had approved 19,008 applications to transfer Budi Diesel eligibility, of which 5,555 were from Sabah, he said.
Liew said the government would continue assessing the scheme using diesel consumption data, public feedback, input from state governments and the requirements of the sectors involved.
"Any further improvements will be evaluated based on data to ensure subsidies reach eligible users through a more accessible, fair, targeted and sustainable mechanism, while preventing leakage and abuse," he said.
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