The perception that the government has decided to abolish diesel subsidy is incorrect, as it was only retargeted to address the long-standing issue of leakage resulting from blanket subsidies, said Domestic Trade and Cost of Living Minister Armizan Mohd Ali.

Armizan explained that diesel subsidy is now targeted through retail price subsidy at petrol stations for 33 types of public and goods transportation via the Subsidised Diesel Control System (SKDS) and RM200 cash assistance for households using diesel vehicles for individuals or agri-commodity through the Madani Subsidy Assistance (Budi Madani).