KUALA LUMPUR (June 6): The government has decided and set a date for the rationalisation of diesel subsidies, said Economy Minister Mohd Rafizi Ramli.

He said the announcement will be made at the appropriate time.

“It’s just that the sequencing has to be correct, and it is about balancing and reducing the risk of knock-on inflation. We have figured it out,” he told the media after the launch of the Oil and Gas Services and Equipment (OSGE) Census 2024 here on Thursday.

He emphasised that the government will have to make sure there's no unnecessary knock-on effects on inflation.

"Another reason is over the supply, because sometimes if it is an early plan, users will 'stock up' early, because they know the price will go up in two or three months.

“If we do diesel subsidy retargeting for the purpose of managing hoarding and smuggling, announcing the date will contribute towards a spike in smuggling,” he said.

He also noted that it is impossible for stricter enforcement, as there are only about 2,500 enforcement officers.

The Ministry of Finance has announced that individual private diesel vehicle owners could submit applications under the individual category, while small-scale farmers and smallholders could submit applications under the agri-commodity category of the Budi Madani subsidy assistance.

Eligible recipients will receive Budi Madani assistance of RM200 per month, in line with the implementation of targeted diesel subsidies.