Diesel Is Now RM3.35 Per Litre For Malaysians, Except In Sabah, Sarawak & Labuan
Despite the RM1.20 price hike, Malaysia's new diesel price is still among the lowest in the world.
By Sadho Ram — 10 Jun 2024, 10:08 AM
Starting today, 10 June, Malaysians outside Sabah, Sarawak, and Labuan will now have to pay RM3.35 per litre of diesel — almost 50% more — as part of the government's subsidy rationalisation exercise
Finance Minister II Datuk Seri Amir Hamzah Azizan explained on Sunday, 9 June, that the diesel subsidies are being discontinued, raising the price of a litre of diesel from RM2.15 to RM3.35.
"With the targeted assistance mechanism already in place, the government is now ready to adjust the diesel price for all states throughout Peninsular Malaysia," the New Straits Times quoted him as saying.
The price will be reviewed weekly, and the government will monitor the situation to prevent price instability.
The retail price of diesel fuel in Sabah, Sarawak, and Labuan will remain at RM2.15 per litre.
However, some 30,000 private diesel vehicle owners in the B40 category will receive RM200 under the subsidy rationalisation exercise
According to Amir, this group consists of individuals and small commodity owners.
"The BUDI MADANI programme provides a cash aid of RM200 per month to eligible private diesel vehicle and small commodity owners to help cover the increased cost of diesel fuel," he said.
He said about 80% of diesel users will receive enough cash aid under the Budi Madani programme to cover the RM1.20 difference between the current and new diesel prices.
WATCH:
Amir said that the government expects to save RM4 billion per year
According to him, although the volume of subsidised diesel increased from 6.1 billion litres in 2019 to 10.8 billion litres in 2023, there was no significant increase in the number of diesel-powered vehicles.
As a result, diesel subsidies surged tenfold within a brief span of five years.
"Diesel subsidies have increased tenfold from RM1.4 billion in 2019 to more than RM14.3 billion in 2023," he said, adding that this shows there was leakage and the subsidy was not benefitting the target group.
Despite the nearly 50% hike, Malaysia's new diesel prices still rank among the lowest globally and the second lowest in ASEAN
In Thailand, diesel is sold at RM4 per litre, RM4.50 in Indonesia, and RM9.30 in Singapore.
In Brunei, however, diesel is the cheapest at RM1.09 per litre.
