TUMPAT: The Domestic Trade and Cost of Living Ministry has been making preparations for diesel subsidy reforms, said Minister Datuk Armizan Mohd Ali today.
He said the preparations began after the subsidy rationalisation was announced by the government in the 2024 Budget last year.
"In terms of system and data integration, the ministry is ready. We also did a pilot project
"The ministry believes the rationalisation will be carried out this year," he said after visiting the Kelantan-Thai border here.
Armizan said Prime Minister Datuk Seri Anwar Ibrahim was expected to make the announcement.
He said he hoped that with the implementation, diesel smuggling along the border would be reduced.
On May 28, Anwar said the Finance Ministry would announce the mechanism for the diesel subsidy rationalisation "in the nearest time".
He said Finance Minister II Datuk Seri Amir Hamzah Azizan would announce it.
Earlier, Anwar announced the cabinet's decision to implement targeted subsidies for fuel, starting with diesel, which was projected to save the country RM4 billion annually.
He said the targeted fuel subsidies would start with diesel and would apply to only users in the peninsula, and not those in Sabah and Sarawak.
He added that while the rationalisation was announced by him, the work would be delegated to the relevant ministries.