Government To Standardise Subsidised Diesel Prices Next Month

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Eligible Malaysians will get to enjoy subsidised diesel at RM2.10 starting in July, the Finance Ministry said in a statement on Sunday (21 June).

In line with the Budi Madani RON95 (Budi95) framework, the move would be implemented through a reformed, uniform diesel subsidy targeting system using the MyKad mechanism.

“Through this reform, Malaysians will enjoy the same price and purchasing method nationwide. The diesel subsidy will be chanelled directly to citizens through MyKad verification, while non-citizens and ineligible parties would have to purchase diesel fuel at unsubsidised prices,” the ministry said.

It also highlighted that the step is a necessary one, as the Middle East crisis has placed pressure on global oil supply and created room for leakages and smuggling of subsidised fuel, including across borders.

According to the statement, diesel is currently being sold at RM2.15 per litre at all petrol stations in Sabah and Sarawak, compared to unsubsidised diesel in Peninsular Malaysia which is priced at RM4.37 per litre.

Under the subsidy reform, the retail price of diesel in Sabah and Sarawak will be aligned with prices in the peninsula, which means non-Malaysians will no longer benefit from the subsidy.

Meanwhile, citizens in Sabah and Sarawak who own diesel vehicles will see the retail price of diesel drop from RM2.15 to RM2.10 per litre.

Finance Minister II Datuk Seri Amir Hamzah Azizan will be announcing further details on the implementation of the diesel retargeting reform today (22 June).

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