Vehicles transporting construction materials eligible for targeted diesel subsidy

KUALA LUMPUR: Vehicles used to transport construction materials will continue to enjoy the diesel subsidy despite the upcoming 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 the diesel subsidy,” she said in response to Yusuf Abd Wahab (GPS – Tanjong Manis) in the Dewan Rakyat on Monday (Nov 27).

Yusuf had asked if the construction costs would be affected if the targeted subsidy that includes diesel would be implemented next year.

“With the targeted subsidy mechanism, it would potentially affect the logistic cost to transport the construction materials.

“If the cost of transport increases, it will then affect the small contractors. What are the interventions that the government could take to continue controlling the costs?” Yusuf said.

Fuziah also said that the ministry would 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 to request 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 is imposed,” she said.

On Nov 6, Economy Minister Rafizi Ramli said that the 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 would be based on net disposable household income through social protection or assistance schemes.

The third would be a combination of household and individual earnings, which would be implemented using a subsidy 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.