KUALA LUMPUR: The government needs more consumption data before it can decide on quotas for subsidised diesel, according to a Domestic Trade and Cost of Living Ministry (KPDN) officer.
Ahmad Syaziat Azizan, an accountant at the Petroleum Regulatory Division of KPDN said the ministry is studying the implementation of the diesel subsidy to get more data but for now, it is not enough to decide on the quota.
"Moving forward, there are some financial limitations that we have to set. So, some of them might be decided later on but it will depend on the consumption data that we received," he said, during a panel session organised by Association of Malaysia Hauliers (AMH) which was attended by 270 members of the association, and stakeholders.
Ahmad Syaziat assured industry players that the government will inform them before the quota is set up.
Meanwhile, AMH's president Soo Chee Yeong said when deciding the quota for subsidised diesel, he hopes the government considers operations with extensive travel, including consumption during festive seasons.
Commenting on the targeted diesel subsidy programme, he said that while it is overall good, its current mechanism is not good.
"I can apply very fast for my quota but when it comes to the fuel suppliers side, there is a lot of improvement could be done."
"I suggest to set up a task force where users, private sectors, Finance Ministry and KPDN work together to monitor, identify and ratify issues," he said.
The government kicked off its diesel subsidy rationalisation programme on June 10, 2024. This included a Subsidised Diesel Control System (SKDS) 2.0, which provides fleet cards to eligible logistics vehicles at RM2.15 per litre.
Themed as "Shaping the Future of Malaysia's Commercial Vehicle Transportation Industry, the event today offered a chance to members to share their view on topics such as diesel subsidy, e-Invoicing, container deport gazettement order and road safety requirement.
According to Ahmad Syaziat, the commercial sales of diesel surged 27 per cent while retail sales fell sharply by 35 per cent following the subsidy implementation, which reflects the misuse and leakage in the industry.
He said diesel sales of the gas stations near the border also declined 44 per cent, indicating a decrease on smuggling activities.