Prime Minister Anwar Ibrahim has instructed the Transport Ministry to explore reducing road tax rates for diesel vehicles as fuel price pressures continue to rise due to the ongoing Middle East conflict.
He said the proposal had already been discussed with Transport Minister Loke Siew Fook as part of efforts to ease the financial burden on road users.
“We cannot afford to lower diesel prices at this time, but we can consider adjustments to road tax,” he said during the 80th anniversary celebration of the Road Transport Department held at Stadium Batu Kawan.
The move reflects growing concerns over cost-of-living pressures, particularly for motorists and businesses that rely heavily on diesel-powered vehicles.
In Malaysia, diesel vehicle road tax is typically higher than that of petrol vehicles with similar engine capacity due to an added diesel surcharge. However, reduced rates are currently applied in regions such as Sabah, Sarawak, Labuan, Langkawi, and Pangkor.
The proposed review is seen as a potential short-term measure to cushion the impact of rising fuel costs while broader economic conditions remain uncertain.
