‘Good politics but bad economics’?: Why Malaysia is rolling out new diesel subsidies
- KUALA LUMPUR: Malaysia’s decision to revive blanket diesel subsidies under a more controlled scheme shows the “urgent need” to plug massive leakages and abuse through smuggling and consumption by foreigners in a way that is politically palatable, say analysts.
- However, they caution that by more than halving the price of diesel in peninsular Malaysia, the government’s finances could come under strain if oil prices rise again.
- From Jul 1, the price of diesel will drop to RM2.10 per litre (US$0.50), down from its current subsidised price of RM2.15 per litre in the East Malaysian states of Sabah and
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- KUALA LUMPUR: Malaysia’s decision to revive blanket diesel subsidies under a more controlled scheme shows the “urgent need” to plug massive leakages and abuse through smuggling and consumption by foreigners in a way that is politically palatable, say analysts.
- However, they caution that by more than halving the price of diesel in peninsular Malaysia, the government’s finances could come under strain if oil prices rise again.
- From Jul 1, the price of diesel will drop to RM2.10 per litre (US$0.50), down from its current subsidised price of RM2.15 per litre in the East Malaysian states of Sabah and
Sources: CNA