Prime Minister Anwar Ibrahim has announced that the government will end the blanket subsidy for fuel that benefits both the “maha kaya” (ultra-rich) and foreigners.

The decision comes as it is moving ahead with the implementation of targeted subsidy with an expected savings of RM4 billion.

In a live telecast tonight, Anwar said the relevant ministry will soon announce further details on implementing the targeted subsidy.

“Targeted subsidy will be implemented for diesel.

“For a start, the targeted subsidy will only involve consumers in the peninsula and not Sabah and Sarawak.

“What is the difference (between peninsula and East Malaysia)? In Sabah and Sarawak, almost all families use diesel for their vehicles,” said the finance minister, who described the current blanket subsidy as an approach that is neither reasonable nor logical.

At the same time, Anwar said the government will continue to subsidise diesel for 10 types of public transport and 23 types of vehicles used to transport goods, to curb a sudden increase in prices of goods and services.

“These include bus and taxi operators. The government will also continue to subsidise diesel for certain categories of fisherfolk,” he added.

Anwar assured that savings generated from the reduced subsidy costs will be returned to the people in the form of increased financial assistance.

The increases include higher allocations of RM700 million benefiting 700,000 Sumbangan Asas Rahmah recipients, as well as RM10 billion for nine million Sumbangan Tunai Rahmah recipients this year.

Fuel subsidy cut? Baseless report, don't create panic - Fuziah

Fuel subsidy cut? Baseless report, don't create panic - Fuziah

Report: Govt set to cut fuel subsidies by June

Report: Govt set to cut fuel subsidies by June

Targeted subsidy delay will cost govt RM2b for petrol monthly

Targeted subsidy delay will cost govt RM2b for petrol monthly

PM indicates targeted subsidies will be through cash transfers

PM indicates targeted subsidies will be through cash transfers