PUTRAJAYA: The number of diesel smuggling cases has shown a decline particularly in the borders of Peninsula Malaysia since the rationalisation of diesel subsidy implementation was carried out.
Communications Minister Fahmi Fadzil said based on inspections carried out by the Domestic Trade and Cost of Living Ministry, smuggling cases have declined especially in areas near Rantau Panjang and Wong Kelian.
"Several activities believed to be smuggling (of diesel) have declined, especially in the Peninsular border areas.
"Hence, it is not impossible that some smuggling activities have been successfully curbed due to the re-targeting of subsidies," he told a press conference today.
At the same time, Fahmi added that the Cabinet meeting today also touched on the expansion of targeted diesel subsidies for tour bus operators.
This, he said, was as Prime Minister Datuk Seri Anwar Ibrahim had requested the Tourism, Arts and Culture Ministry (Motac) to examine the issue and assist the group.
"The prime minister has asked Motac to ensure help and assistance is provided to them.
"The government also intends to look at a mechanism through which we can assist this particular group because the announcement came at a time when they had made certain arrangements.
"Further details and mechanisms will be announced by Motac," he said, adding that Anwar also requested that the issue related to fleet cards be examined, including expediting their distribution.
Meanwhile, Fahmi also reminded sectors that do not receive diesel subsidies or are not eligible for such subsidies not to take advantage of the situation by raising prices.
He said the government has also entrusted the Domestic Trade and Cost of Living Ministry to take strict action if there are any parties attempting to take advantage by raising prices.
This includes issues of any towing firms and concrete producers having raised their prices following the hike in the price of diesel.
"Upon checking, the ministry found out that they (towing firms and concrete producers) are ineligible for diesel subsidies.
"Hence, we will leave all issues relating the matter to the ministry for stern actions to be taken."
Diesel subsidies for certain groups in Peninsular Malaysia have been discontinued starting June 10.
Finance Minister II Datuk Seri Amir Hamzah Azizan said the decision will put the price for a litre of diesel at about RM3.35 per litre according to the automated pricing mechanism from the current price at about RM2.15.
He said it follows the unsubsidised market price based on the average for May 2024, according to the automatic pricing mechanism formula.