KUALA LUMPUR: The implementation of the diesel subsidy rationalisation programme has resulted in a 78 per cent reduction in the leakage of subsidised diesel, the Dewan Rakyat was told today.

Deputy Domestic Trade and Consumer Affairs Minister Fuziah Salleh said diesel seizures also decreased by 87 per cent.

These figures, said Fauziah, was derived from Ops Tiris data and that it was based on a comparison of the 20 days before and after the implementation of diesel rationalisation, which began on June 10.

She added retail diesel sales dropped by 37 per cent within the first week of the subsidy rationalisation programme implementation.

"Commercial diesel sales increased by 44 per cent during this time, whereas border diesel sales decreased by 24 per cent," she said in response to Datuk Rosol Wahid (PN-Hulu Terengganu).

Rosol inquired on the impact of diesel subsidy rationalisation on prices of goods and cost of living, while at the same time, consumers have to bear the impact of the increase in service tax rates, electric tariffs, and water bills.

On the impact of rationalisation, particularly regarding the increase in the price of goods, Fuziah said the ministry identified two subcategories of goods that experienced price increases.

She said meat and vegetables showed varying percentage increases ranging from 0.24 per cent to 53.6 per cent, with the highest recorded increases reported for tomato (53.6 per cent) and red chili Kulai (17.4 per cent).

She said the significant rise in vegetable prices last month (June) was attributed to unpredictable weather conditions.

The standard clean chicken price remained stable at a reasonable level, however, some items, such as onions and chicken eggs, saw price decreases a month after the implementation of diesel subsidy rationalisation.

"Therefore, attributing the increase in the cost of living solely to the reduction in diesel subsidies is not justified, as other factors also contribute to the rise.

"Regarding the Sales and Service Tax (SST), the two per cent increase applies only to existing taxable services, excluding meal services, telecommunications and parking."

https://www.nst.com.my/news/nation/2024/07/1077198/subsidised-diesel-leakage-reduced-78-cent-after-diesel-prices-floated