SD Guthrie Bhd, a prominent player in the palm oil sector, has thrown support behind the government’s move to implement targeted diesel subsidies.
SD Guthrie, formerly known as Sime Darby Plantation, said the company had always purchased diesel at market price without any form of subsidy or preferential pricing.
"Thus, when this rationalisation plan is implemented, it will not have any material impact on the cost of purchasing diesel," it said in a statement.
The company also said it had aligned its strategies to market-driven principles and thus "contributes positively to Malaysia’s economic progress and reform agenda".
Earlier, economy minister Rafizi Ramli said the government had decided against revealing the exact date for the commencement of its targeted subsidy for diesel programme to prevent hoarding and smuggling of the commodity.
Rafizi said the ministry already have a date in mind and an announcement would be made "when the time comes".
In February, domestic trade and cost of living minister Armizan Mohd Ali revealed that three million litres of diesel are smuggled out of the country every day, resulting in daily losses of RM4.5 million.
On May 21, Prime Minister Anwar Ibrahim said the government is expected to save around RM4 billion a year with targeted diesel subsidies.