CIMB Investment Bank Bhd has projected a June rollout for the fuel subsidy rationalisation plan, Bernama reports.

The government has indicated that the subsidy cuts will start with diesel.

“The implementation date was not stated, though we understand that registrations for the diesel fleet card system are due to be in the next month, putting June as the earliest start date,” CIMB said in a note today.

“Considering the application process for the fleet card, we expect the rollout to take place in mid-June at the earliest,“ it said.

Prime Minister Anwar Ibrahim, in a national address last night, announced the cabinet’s decision to rationalise subsidies for fuel, starting with diesel.

He did not provide the timeline for the plan.

Domestic Trade and Cost of Living Minister Armizan Mohd Ali said in February that the government planned to introduce targeted diesel subsidies by June.

The government expects to save RM4 billion a year, which is 0.2% of the GDP.

There are two application levels under the subsidised diesel control system (SKDS) 2.0.

The SKDS 2.0 application process for companies operating nine types of goods transport vehicles commenced on March 7 and has since expanded to include 14 tmore ypes of commercial vehicles.

“At this stage, it remains unclear whether eligible individuals owning diesel-powered vehicles will need to apply for cash aid, or if the government will utilise information from the Padu database,“ the note added.

The National Utility Database, or Padu, is a centralised system for the management of socio-economic and income data. – May 22, 2024.