Summary
- New MyKad-based diesel subsidy begins July 1.
- Government expects savings of up to 1 billion litres yearly.
- Aims to curb fuel leakages and smuggling.
- Eligible Sabah and Sarawak 4WD owners to receive up to 300 litres monthly.
KOTA KINABALU, June 24 — The government expects its new MyKad-based diesel subsidy system to reduce leakages by up to one billion litres annually while strengthening fuel supply security nationwide.
Finance Minister II Amir Hamzah Azizan said the system, which takes effect in Sabah, Sarawak and Labuan on July 1, will link subsidised diesel purchases directly to eligible Malaysians.
Each recipient will receive a 200-litre monthly quota, while eligible pickup and four-wheel-drive vehicle owners in East Malaysia will receive an additional 100 litres.
Authorities recorded 554 fuel smuggling cases nationwide in the first half of 2026, including 291 cases in Sabah, Sarawak and Labuan.
