Anthony Loke says subsidies remain for essential goods transport, despite diesel price adjustments.
SETIA ALAM: The government continues to provide targeted subsidies to logistics companies transporting essential goods, even as diesel prices rise under market adjustments, Transport Minister Anthony Loke said.
He said many operators in the sector, particularly those handling food and basic necessities, are still receiving monthly diesel subsidy quotas.
“Logistics companies still get subsidies. A lot of lorries that carry basic goods are given a diesel subsidy quota every month,” he told reporters today.
Loke stressed that with such assistance in place, companies should not use rising diesel prices as a blanket justification to increase charges.
“They still get subsidies for their vehicles, so they cannot simply say diesel prices have increased and raise their prices,” he said.
He added that the subsidy support remains part of ongoing government efforts to ease cost pressures on critical supply chains.
“The assistance continues where most of the logistics sector still receives subsidies from the government,” he said.
At the same time, Loke said diesel prices had to be adjusted to market levels to prevent leakages and cross-border abuse.
“If we do not increase the price, people will take the opportunity to pump our diesel and sell it to neighbouring countries. This will harm the country,” he said.
However, Loke acknowledged that not all transport sectors receive the same level of support, citing tourism-related operators as an example.
“This is not for every sector, if we subsidise tourist buses, it means we are subsidising tourists,” he said, adding that such matters fall under the purview of other ministries.
Loke said subsidy allocations are prioritised for critical sectors, particularly those linked to essential goods and public transport.
