Govt sets subsidised diesel price at RM2.10 per litre from July

Diesel is currently sold at a subsidised retail price of RM2.15 per litre at petrol stations in Sabah and Sarawak, compared with the unsubsidised retail price of RM4.37 per litre in Peninsular Malaysia.

PETALING JAYA: The government will lower the price of subsidised diesel for Malaysians to RM2.10 per litre nationwide from July.

The finance ministry said today the move would standardise diesel subsidies across the country through a MyKad-based verification system, similar to the mechanism used for subsidised RON95 fuel under the BUDI95 programme.

Currently, diesel is sold at a subsidised retail price of RM2.15 per litre at petrol stations in Sabah and Sarawak, compared with the unsubsidised retail price of RM4.37 per litre in Peninsular Malaysia.

“The price of diesel for Malaysians in Sabah and Sarawak will fall by five sen per litre, from RM2.15 to RM2.10,” said the ministry in a statement.

“This will allow Malaysians to enjoy the same price and the same system nationwide.

“Diesel subsidies will be channelled directly to Malaysians, while non-citizens and ineligible parties will have to purchase diesel at the unsubsidised price.”

The ministry said the move was aimed at ensuring government subsidies benefit only Malaysians, as well as curbing leakages and smuggling amid continued pressure on global oil supplies due to the crisis in West Asia.

Finance minister II Amir Hamzah Azizan will provide further details on the diesel subsidy tomorrow.