NIBONG TEBAL: The government has never done away with subsidy for fuel, including diesel, which has reached up to RM60 billion annually.
Economy Minister Rafizi Ramli said in fact the money was now channelled directly to the people.
Explaining the rationale, he said the crude oil subsidies were previously paid to a select few oil companies before this.
However, he said, the subsidies were now distributed directly to poor families to enjoy between RM200 and RM500 monthly.
"At the time when the petrol price was RM1.90 a litre, do you know how much the crude oil price per barrel was then?
Have you any idea how much in subsidies the government spent? Only about RM3 billion from the RM200 billion budget.
"Now, the subsidy is RM60 billion with crude oil reaching US$80 a barrel.
"I said previously that oil prices will go down if the crude oil prices are low.
"Now, when the subsidy has reached RM80 billion, we can't even build schools, raise civil servants' salaries and the subsidies have resulted in lower oil prices, which only benefits the rich. So, it is better for us to re-direct the subsidies, not do away entirely with it.
"By re-directing the subsidies, we give the savings directly to those really in need. Diesel for public transportation, small lorries, pick-ups, petty traders and such.
"All of them still enjoy the subsidies. Even those earning RM100,000 and below annually," he said in his speech at the launch of the unity pact election machinery for the Sungai Bakap by-election here yesterday.
The PKR deputy president said this when a man, who claimed to be an Umno supporter, questioned him on why petrol prices had not gone down.
Rafizi had invited him on stage to explain the matter but the man refused his request.
Things became tense when those present jeered at the man, who later left the event.
Rafizi said the people needed to choose whether they preferred the subsidies be given to the select few oil companies or directly to those deserving.
"I am certain that the people will get to see that it is better that the subsidies go to the deserving people," he added.
Yesterday, the government announced that diesel subsidies for certain groups in Peninsular Malaysia would be discontinued starting from 12am today.
Finance Minister II Datuk Seri Amir Hamzah Azizan said this would put the price for a litre of diesel at RM3.35 per litre according to the automated pricing mechanism from the current price of RM2.15 per litre.
He called on those eligible to apply for the Budi Madani diesel subsidy programme and the subsidised diesel control system (SKDS).
The Budi Madani programme grants RM200 monthly to eligible individuals, small-scale farmers and commodity growers starting from May 28.
A total of 30,000 diesel vehicle owners will receive the first RM200 monthly cash assistance from Budi Madani today.