Subsidised diesel cut to RM2.10 per litre nationwide beginning July using MyKad‑based mechanism

The diesel pumps at a petrol station in Kuching. Photo credit: DayakDaily

By DayakDaily Team

KUCHING, June 21: Malaysians will be entitled to subsidised diesel at the price of RM2.10 per litre starting next month.

In a statement, the Ministry of Finance (MOF) said that the price reduction will be implemented through a nationwide diesel subsidy targeting reform using a MyKad-based mechanism, in line with the approach introduced under the Budi Madani Ron95 (BUDI95) programme.

“Under this reform, Malaysians will enjoy the same diesel price and purchasing mechanism throughout the country. Diesel subsidies will be channelled directly to Malaysian citizens through MyKad verification, while non-citizens and those not eligible for subsidies will be required to purchase diesel at the unsubsidised market price.

“Amid the ongoing Middle East crisis, which continues to put pressure on global oil supplies, this measure is important to ensure that government subsidies reach only Malaysian citizens while reducing leakages and the smuggling of subsidised diesel,” it said.

It went on to say that the significant gap between subsidised and unsubsidised diesel prices has created opportunities for leakages and the smuggling of subsidised diesel, including across national borders.

At present, diesel is sold at a subsidised retail price of RM2.15 per litre at all petrol stations in Sabah and Sarawak, compared with the unsubsidised retail diesel price of RM4.37 per litre in Peninsular Malaysia.

“With the diesel subsidy targeting reform, diesel retail prices in Sabah and Sarawak will be aligned with the retail pricing mechanism in Peninsular Malaysia, meaning non-citizens will no longer benefit from diesel subsidies.

“At the same time, Sabah and Sarawak residents who own diesel vehicles will enjoy a reduction in the retail diesel price from RM2.15 per litre to RM2.10 per litre,” said the statement.

Further details on the implementation of the diesel subsidy targeting reform will be announced by Finance Minister II Senator Datuk Seri Amir Hamzah Azizan tomorrow (June 22). — DayakDaily