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Demand for diesel vehicles expected to stay despite subsidy cut, says auto group | Scoop
Diesel now costs RM3.35 a litre in Peninsular Malaysia. – Halim Salleh/Scoop pic, June 14, 2024
News

Demand for diesel vehicles expected to stay despite subsidy cut, says auto group

Malaysian Automotive Association says such vehicles make up less than 12% of total nationwide

Scoop Reporters
Updated
6:25 PM MYT

 

KUALA LUMPUR – The Malaysian Automotive Association (MAA) predicts that the total industry volume (TIV) for diesel vehicles will not be significantly affected by the government’s move to remove blanket diesel subsidies. 

In a statement today, MAA said that the TIV for diesel vehicles was expected to remain at its projected demand level as there was still a high demand for commercial diesel vehicles, pickup trucks and vans. 

“While users might be more cautious when deciding whether or not to buy such vehicles, they will not deny such purchases as the vehicles are still considered a need,” it added. 

Nationwide, diesel vehicles are less than 12%, MAA said.

It also called for an accurate and efficient rebate mechanism so that the subsidy quotas for eligible sectors worked at preventing transport operators from raising fares.

Targeted diesel subsidies are offered to the B40 income group, eligible commercial vehicles as well as East Malaysian diesel consumers.

Earlier today, Prime Minister Datuk Seri Anwar Ibrahim warned school bus operators against hiking their fares, cautioning that such actions could lead to permit revocations. 

Previously, there were rumours of a possible increase in the fares of school, express and tour buses following the implementation of targeted diesel subsidy, which saw a diesel price increase of more than 50% to RM3.35 in the peninsula, starting June 10.

Under the Subsidised Diesel Control System for land public transport, including school buses, express buses, ambulances and fire engines, diesel remains priced at RM1.88 per litre. 

The government is expecting to save about RM4 billion annually from a projected immediate reduction in subsidy leakages due to the implementation of targeted diesel subsidies. – June 14, 2024

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