PUTRAJAYA, June 9 — Effective midnight on June 10, the market price of diesel in Peninsular Malaysia will be capped at RM3.35 per litre as part of the government’s initiative to curtail leakages in subsidised items. Second Finance Minister Datuk Seri Amir Hamzah Azizan announced that this measure aims to address the discrepancy in diesel consumption versus vehicle numbers, which rose from 6.1 billion litres in 2019 to 10.8 billion litres in 2023.
To support private diesel vehicle owners, the government will disburse RM200 Budi Madani cash aid to 30,000 eligible recipients, covering 80% of this group. Public transportation, school buses, and other essential services will continue to receive targeted subsidies under the Subsidised Diesel Control System (SKDS) 1.0, while SKDS 2.0 will focus on logistics for daily needs.
The new policy is expected to save the government RM4 billion annually and curb illegal diesel smuggling driven by higher prices in neighbouring countries. Prime Minister Datuk Seri Anwar Ibrahim emphasized that this rationalisation programme is initially limited to Peninsular Malaysia, sparing Sabah and Sarawak for now.
