The Ministry of Finance has announced that beginning July 2026, the price of subsidised diesel will drop to RM2.10 per litre for eligible Malaysians.
Its nationwide rollout standardises the retail price across the country, dropping the rate even in Sabah and Sarawak, where it currently sits at RM2.15 per litre. The implementation follows the same mechanism as the BUDI95 programme, requiring Malaysians to present their MyKad for verification at the pumps to reduce subsidy leakage and curb fuel smuggling.
Non-citizens and ineligible parties must pay the unsubsidised market rate, which stands at RM4.37 per litre for B10 diesel and RM4.57 per litre for B7 diesel at the time of writing.
“Currently, diesel is sold at a subsidised price of RM2.15 per litre at all petrol stations in Sabah and Sarawak, compared to the unsubsidised price of RM4.37 per litre in Peninsular Malaysia.”
“With the diesel subsidy targeting reform, the retail price of diesel in Sabah and Sarawak will be aligned to the retail price in Peninsular Malaysia, and non-citizens will no longer enjoy the subsidy,” the ministry said in a statement.
More information on the rollout will be announced by Finance Minister II Datuk Seri Amir Hamzah Azizan today.
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