The government has agreed to reduce the subsidised diesel price for Malaysians to RM2.10 per litre starting next month.
The Ministry of Finance (MOF) said the price adjustment will be implemented through a refined diesel subsidy targeting system, standardised nationwide using a MyKad-based mechanism, in line with the approach already adopted under the Budi Madani RON95 programme.
Under the new framework, Malaysian citizens will continue to enjoy a uniform subsidised price nationwide, verified through MyKad, while non-citizens and ineligible parties will be required to purchase diesel at market rates without subsidy.
MOF said the move is necessary amid ongoing geopolitical tensions in West Asia, which have continued to exert pressure on global oil supply, making it crucial to ensure subsidies are directed only to eligible Malaysians and to reduce leakages and diesel smuggling.
The ministry noted that the significant gap between subsidised and non-subsidised diesel prices has contributed to increased smuggling activities, including cross-border diversion of fuel.
It also said diesel is currently sold at RM2.15 per litre in Sabah and Sarawak, compared to RM4.37 per litre without subsidy in Peninsular Malaysia.
With the new subsidy targeting reform, diesel prices in Sabah and Sarawak will be aligned with Peninsular Malaysia, while vehicle owners in East Malaysia will see a reduction from RM2.15 to RM2.10 per litre.
Further details on the implementation will be announced by Finance Minister II Datuk Seri Amir Hamzah Azizan tomorrow.
