THE money saved from the removal of fuel subsidies will not be used to pay ministers a higher allowance, Prime Minister Datuk Seri Anwar Ibrahim said today.

He said the RM4 million savings would be spent on public transport and cash aid, such as Sumbangan Tunai Rahmah (STR).

“The cost of the STR has risen to nearly RM10 billion as the number of recipients has reached nine million people,” he said.

“The subsidy rationalisation is to ensure that the subsidies do not go to the ultra-rich and foreigners,” he said at the Finance Ministry this morning.

On Sunday, Finance Minister II Datuk Seri Amir Hamzah announced a new diesel price of RM3.35 per litre starting yesterday.

The previous price of diesel – RM2.15 per litre – is maintained for Sabah, Sarawak and Labuan.

The government has introduced the Budi Madani individual and Budi Madani Agri-commodity cash aid programmes for about 30,000 recipients, who would each receive RM200 in their accounts.

This was to cushion the impact of the higher diesel price.

“The subsidy rationalisation for diesel was the third initiative introduced by the government to restructure the subsidy distribution system,” Anwar said.

“While the move is unpopular and may cause a negative political impact, subsidy rationalisation must be done for the benefit of the majority.

“We must not be giving subsidies to the ultra-rich, large industries and foreigners… We are not discriminating against foreigners but they do not pay tax, and their levy tax is small,” added Anwar, who is also the finance minister.

Electricity tariffs were rationalised earlier this year, to save the government RM4.5 billion per year. The end of subsidies for chicken is reported to save the government RM1.2 billion a year. – June 11, 2024.