SHAH ALAM, June 21 — The MADANI government has announced a reduction in the subsidised diesel price to RM2.10 per litre for Malaysian citizens nationwide, effective from July.
The Finance Ministry (MOF) said the announcement was made by Prime Minister cum Finance Minister Anwar Ibrahim while in Bintulu, Sarawak, today.
The measure will be implemented through a reformed and standardised diesel subsidy-targeting system across the country, using a MyKad-based mechanism, in line with the approach adopted under the BUDI MADANI RON95 (BUDI95) programme.
It will allow Malaysians to enjoy the same diesel price and purchasing method nationwide through MyKad verification.
“Diesel subsidies will be channelled directly to Malaysian citizens through MyKad verification, while non-citizens and those who are not eligible will be required to purchase diesel at the unsubsidised price,” the ministry said in a statement.
The MOF added that the measure is important amid the ongoing West Asia conflict, which continues to place pressure on global oil supplies, to ensure that government subsidies are enjoyed only by Malaysian citizens.
Its implementation is expected to reduce leakages and the smuggling of subsidised diesel.
“The significant difference between the subsidised diesel price and the unsubsidised price previously created opportunities for leakages and the smuggling of subsidised diesel, including across national borders,” it said.
At present, diesel is sold at a subsidised retail price of RM2.15 per litre at all petrol stations in Sabah and Sarawak, compared with the unsubsidised diesel retail price of RM4.37 per litre in Peninsular Malaysia.
Following the subsidy-targeting reform, diesel retail prices in Sabah and Sarawak will be aligned with retail prices in Peninsular Malaysia.
Simultaneously, Malaysian citizens using diesel vehicles in both states will enjoy a reduction in price from RM2.15 per litre to RM2.10 per litre.
Further details regarding the implementation of the diesel subsidy-targeting reform will be announced tomorrow by Finance Minister II Datuk Seri Amir Hamzah Azizan.
