Muhyiddin wants govt to suspend petrol, diesel subsidy rationalisation plan

KUALA LUMPUR: Perikatan Nasional chairman Tan Sri Muhyiddin Yassin has urged the government to suspend the plan to rationalise petrol and diesel subsidies.

Emphasising the need for a thorough review of plans at the Dewan Rakyat, Muhyiddin (PN-Pagoh) said a suspension of the rationalisation for the two subsidies should be done in light of the current burdens faced by the people due to the escalating prices of goods and various taxes.

“It may be advisable for the government to postpone the rationalisation plan for petrol and diesel subsidies for the time being.

“I understand the fiscal burden borne by our country due to the significant amount of subsidies, but at the same time, are we willing to see the people suffer while they are already burdened with various issues related to the cost of living and tax increases?”

Prime Minister Datuk Seri Anwar Ibrahim, in tabling the 2024 Budget, had announced that the government was planning to rationalise diesel subsidies in phases, allowing subsidised prices for select users.

He said it would be done in phases in addressing the issue of leakages while still reducing the rising costs faced by the people.

Cargo transport companies, among others, would still be able to enjoy subsidised diesel while others would be charged at a higher price.

Muhyiddin said that if the subsidy rationalisation plan is implemented, he was 100 per cent certain that all goods and services will increase in price, leading to more suffering for the people.

He added that the government seemed to overlook the burden borne by the people with decisions to raise tax rates and other recent increases.

“It’s as if everything is piled onto the people without a comprehensive social safety net strategy.

“Does the government not understand the impact of the SST (Sales and Service Tax) increase on the overall supply chain, ultimately resulting in nearly all goods increasing in price, with the effects borne by the common people?”



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