KUALA LUMPUR: Geographical factors and the use of diesel in most transportation modes are among factors why targeted fuel subsidies have not yet been implemented in Sabah and Sarawak.
Deputy Finance Minister Lim Hui Ying said this is as majority of transportation modes used for economic activities and development programmes and projects in these two states depend on dieselfuel.
"Simultaneously, the geographical conditions of these states limit the feasibility of the fleet card mechanism, which requires more suitable infrastructure, particularly in remote areas.
"We (the government), however, are still in the research phase to ensure that the implementation (of targeted diesel subsidies) can be made in the future.
"Nevertheless more time is needed for thorough study," she said, adding that the matter is being monitored from time to time.
She also said the ministry also conducts engagement sessions with related stakeholders and industry players to address the issue.
"We will monitor the situation continuously and remain engaged with the relevant parties and all related industries.
"If any improvements should be made, we will certainly do so. However, it has been less than six months since the implementation (of targeted diesel subsidy implementation) began in June."
She said this during the question and answer session in Dewan Rakyat.
Earlier, she responded to a question from Muhammad Fawwaz Mohamad Jan (PN-Permatang Pauh) on allegations that the government imposes hidden taxes on RON97 petrol and diesel prices.