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Nga: House prices should not rise steeply due to fleet cards

Publish date: Sat, 15 Jun 2024, 08:57 AM

TELUK INTAN: There should not be a steep increase in house prices after the diesel rationalisation exercise was announced, as many owners of diesel vehicles can still buy the fuel at subsidised prices, says Nga Kor Ming.

The Housing and Local Government Minister said lorries were among the 33 types of diesel vehicles whose owners are able to buy subsidised diesel at the old price of RM2.15 per litre through the fleet card system called SKDS (Subsidised Diesel Control System).

He said the Domestic Trade and Cost of Living Ministry would monitor the situation to ensure no one took advantage and burdened the people by increasing prices.

“Some 33 types of vehicles, which include school and factory buses and lorries, will continue to get the fleet cards.

“I understand from the Finance Ministry that about 400,000 diesel vehicle owners will receive these cards. So I see no reason for the prices to increase steeply,” he said after a ground-breaking ceremony for the Bandar PR1MA Teluk Intan project here yesterday.

Building materials suppliers, such as concrete makers, have said prices would increase between 20% and 30% after the government ended blanket subsidies for diesel, which caused its retail price to rise to RM3.35 per litre. Diesel subsidies will be given directly to selected companies in certain sectors through the SKDS and the RM200 per month Budi Madani scheme.

Nga said that the removal of blanket subsidies has been supported by all previous prime ministers.

“Tun Dr Mahathir Mohamad, Tan Sri Muhyiddin Yassin, Datuk Seri Ismail Sabri Yaakob and even PAS leaders agreed that it was a brave move to ensure the future of the country,” he added.

He said the blanket subsidy scheme, where diesel was sold at a flat rate of RM2.15 per litre, had cost the government RM4.5mil in losses per day as about three million litres were smuggled out of the country every day.

“We now see that smuggling has been reduced, we can save RM4.5mil every day, and that money can be used to help the people,” Nga added.

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