Announcing New Diesel Price In Advance Will Cause Hoarding Rafizi


 


Economy Minister Rafizi Ramli said an advanced announcement of when the new diesel price would take effect could cause hoarding.
He was asked about an apparent delay in implementing the diesel subsidy rationalisation as announced by Prime Minister Anwar Ibrahim on May 21.
He replied that if a notice of a few months is given, it could lead to hoarding attempts by unscrupulous parties.
“People will tank up and stock up. Because they know, in two or three months, the price will increase.
“If you give a date… you will see a spike in smuggling,” he said after launching the Oil and Gas Services Equipment Census (OGSE) 2024 in Kuala Lumpur today.
However, the minister said that the government already has a date for the implementation mechanism to be rolled out.
“We have decided on the date and will announce it when the time is right. However, I have emphasised many times that the sequence must be correct. It is about balancing and reducing the risk of a knock-on effect on inflation,” he added.
Previously, Domestic Trade and Cost of Living Minister Armizan Mohd Ali said the date for rolling out the diesel subsidy rationalisation plan along with the implementation mechanism will be announced at a later date.
Petrol subsidy rationalisation ‘on track’
Rafizi also said that the government’s plan for the petrol subsidy rationalisation is on track.
He said the plan is aimed at reducing deficits.
“Subsidy retargeting is a key lever towards this. It all boils down to dollars and cents. So we are guided by that,” he told reporters.
In November last year, it was reported that the government would roll out the targeted RON95 subsidy programme in the second half of 2024 to optimise its resources by only channeling it to those who need it the most.
Rafizi said a country where those in the top 20 (T20) income group are receiving 53 percent of blanket fuel subsidies is not a sustainable model or an equitable one.
He said implementing the subsidy retargeting programme by the end of 2024 would immediately translate into a better fiscal position for the country.
- Mkini

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