Starting June 10, 2024, which is today, diesel prices in Malaysia have floated and are retailing at RM3.35 per litre. This was announced by Finance Minister II, Datuk Seri Amir Hamzah Azizan, at a press conference held yesterday, according to a report by The Star.
The new diesel price marks an increase of RM1.20 from the previous subsidised price of RM2.15 per litre, which was announced on June 5. Sabah, Sarawak, and Labuan will continue to enjoy the subsidised diesel price.
The government says that diesel subsidy rationalisation for the three regions will only be implemented at a later date. This will help the country save up to RM 4 billion annually, said Prime Minister Datuk Seri Anwar Ibrahim.
Datuk Seri Amir Hamzah Azizan said, “The targeted subsidy decision (by the government) is not an easy step, but one that has been given particular attention.”
“We want to curb leakages that have resulted in losses for the people and the country. We have suffered huge losses yearly and that can impede the country’s economy,” he added.
RELATED: Targeted diesel subsidy: applicants to choose between SKDS 2.0 & BUDI Madani, not both – Armizan
The rationalisation of the diesel subsidy in Malaysia is implemented via two mechanisms, namely the Subsidised Diesel Control System (SKDS) 2.0 and BUDI Madani. SKDS 2.0 is designed for companies and is valid for ten types of public transportation vehicles, as well as 23 goods transport vehicles. Successful applicants will receive a fleet card and are entitled to choose up to three out of five fuel providers within the MySubsidi Diesel System.
The government has also created the BUDI Madani programme, designed for agriculture smallholders who do not have a company. Successful applicants of the program will receive RM200 monthly.
RELATED: BUDI Madani diesel subsidy programme to offer up to RM200 monthly payout, effective June 2024
