Still eligible for fuel subsidy: A lorry carrying construction material is seen on the road in Subang, Selangor. — AZHAR MAHFOF/The Star
VEHICLES used to transport construction materials will continue to enjoy diesel subsidy despite the targeted mechanism, says Deputy Domestic Trade and Cost of Living Minister Fuziah Salleh.
“Lorries that transport construction materials will not be affected (when the blanket subsidy is lifted) because they are still eligible for diesel subsidy,” she said in reply to Yusuf Abd Wahab (GPS-Tanjong Manis) in the Dewan Rakyat yesterday.
Yusuf had asked whether the construction costs would be affected if the targeted subsidy that included diesel would be implemented next year.
“With the targeted subsidy mechanism, it could potentially affect the logistic cost to transport construction materials.
“If the cost to transport increases, it will affect small contractors. What are the interventions the government will take to continue controlling the costs?” Yusuf asked.
According to Fuziah, the ministry will continue to control the price of construction materials such as cement and clinker, and mild steel round bars under the Control of Supplies Act 1961.
“Under the Act, sellers who intend to increase the price need permission to do so from the ministry.
“The ministry will scrutinise and study the costs along the supply chain. For other construction materials, the Price Control and Anti-Profiteering Act will be imposed,” she said.
On Nov 6, Economy Minister Rafizi Ramli said that targeted subsidies for petrol and diesel were likely to be implemented in 2024 using three mechanisms.
He told the Dewan Rakyat that the first mechanism would be based on individual net disposable income.
The second mechanism will be based on net disposable household income through social protection or assistance schemes.
The third will be a combination of household and individual earnings, which will be implemented using a subsidies card.
Rafizi said the targeted subsidies programme was expected to be implemented after the Central Database Hub (Padu) system was rolled out in January next year.
