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CURB ABUSE: Subsidised diesel should only benefit specific target groups

KUALA LUMPUR: A MORE stringent and pragmatic approach is critical in arresting the problem of diesel smuggling.

Jaringan Melayu Malaysia president Azwanddin Hamzah said the authorities needed to draw up a formula to ensure only the target groups benefited from subsidised diesel.

He said the government must find ways to cut off syndicates, which had been siphoning billions of ringgit worth of the fuel.

He said it was incumbent upon the Domestic Trade, Cooperatives and Consumerism Ministry to prevent abuse of subsidised diesel. Last year, 3.5 billion litres of diesel was lost to syndicates.

“It is different if we are getting revenue for the 3.5 billion litres of diesel that was channelled out of the country.

“But we are talking about leakages because the party that is raking in huge profits at the country’s expense are syndicates who abuse the subsidy.”

He said the government had to pay oil and gas companies, such as Petronas, Shell and others in subsidising diesel for commercial vehicle users.

“This is when, in actual fact, the target groups only need 5 billion litres from the 8.5 billion litres of subsidised diesel for commercial vehicles alone, every year.

“Subsidised diesel should only benefit specific target groups and never syndicates.”

“We suspect there could be insiders working with the syndicates.”

Azwanddin called on the Malaysian Anti-Corruption Commission (MACC) to beef up their monitoring and be proactive in arresting the problem.

“I guarantee that if the MACC steps up enforcement and gathers intelligence on this issue, we will be able to combat this scourge and haul the syndicates to court.”

Failure to stop the problem he said would be disastrous to the country’s economy.

Petroleum Dealers’ Association of Malaysia president Datuk Hashim Othman said last month the government could save up to RM8 billion a year by slashing diesel subsidies.

Hashim was responding to reports that Malaysia had lost RM1.2 billion in the past five years to diesel smuggling.

The government subsidy for diesel had more than doubled in four years, from RM4.03 billion in 2010 to RM9.92 billion last year.

-NST

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