KUALA LUMPUR, Nov 2 — The retargeting of the diesel subsidy in phases will only be carried out in the peninsula, Prime Minister Datuk Seri Anwar Ibrahim said.

Anwar, who is also finance minister, said the retargeting will not cover Sabah and Sarawak due to the comprehensive use of diesel in these states.

"(The retargeting of) diesel subsidy is only in the peninsula because diesel is used comprehensively in Sabah and Sarawak. Therefore, in order to implement it there, we would have to study the impact,” he said in winding up the debate on the Supply Bill 2024 at the policy stage in the Dewan Rakyat today.

Anwar said the total annual subsidy cost which has reached RM81 billion is also being enjoyed by foreign nationals and the rich.

"However, subsidised diesel for the fishermen will be continued (at RM1.65 per litre) while that for public transportation, including school buses and vans, remains at RM1.88 per litre.

"Therefore, I hope this retargeting of diesel subsidy can be accepted, as it is able to reduce the government’s (financial) burden,” he added.

The current price of subsidised diesel for the public is RM2.15 per litre compared to the market price that has hit RM3.78 per litre. — Bernama