Diesel prices without subsidy adjusted in Peninsular Malaysia, from RM3.35

KUALA LUMPUR: Beginning today (10 June 2024), diesel prices in Peninsular Malaysia will be adjusted to reflect current market rates, starting at RM3.35 per liter across all petrol stations, in line with the diesel subsidy discontinuation.

Deputy Finance Minister, Datuk Seri Amir Hamzah Azizan, announced that this adjustment is based on the market price without subsidies, averaged from May 2024. He emphasized that this move is necessary to curb the government's growing financial losses, which amounted to RM14.3 billion last year.

Implementation of Subsidy Targeting

The government will implement targeted diesel subsidies through the Subsidized Diesel Control System (SKDS) 2.0, setting specific prices for eligible sectors such as logistics. Additionally, the BUDI Madani assistance program will provide support to qualified individuals, including diesel vehicle owners and small-scale farmers, who can apply through the designated website.

Regular Price Announcements

Amir Hamzah stated in a press conference yesterday that the government will continue to announce fuel prices, including RON95, RON97, and diesel, every Wednesday. He projected that the new pricing and subsidy measures could immediately reduce leakages, potentially saving RM4 billion annually.

He added that the savings from this crucial step will allow more resources to be allocated to other critical sectors, directly improving the quality of life for Malaysians, including public infrastructure, healthcare, and education.

Encouragement to Apply for BUDI Madani

Amir Hamzah urged eligible Malaysians to apply for the BUDI Madani cash assistance program. Those who apply in June will receive assistance for that month and subsequent months. The Minister noted that subsidy leakage has resulted in significant losses, and Malaysia cannot sustain such financial burdens when the funds could be better used to enhance citizens' quality of life.

Additional Measures

The government will maintain SKDS 1.0 for public transportation vehicles like school buses, express buses, ambulances, and fire trucks at RM1.88 per liter, while qualified fishermen will pay RM1.65 per liter. If market changes cause a significant increase in diesel prices, the government will seek ways to stabilize the prices.

Furthermore, the first batch of over 30,000 recipients will benefit from the BUDI Individual and BUDI Agri-Commodities assistance of RM200, deposited into their bank accounts on Monday. Eligible individuals who have not yet applied can still receive the June 2024 assistance if they apply by the end of the month.

Application Information

The Ministry of Finance encourages eligible diesel vehicle owners, small farmers, and commodity smallholders to apply for BUDI MADANI at https://budimadani.gov.my. Qualified logistics vehicle owners can apply for fleet cards under SKDS 2.0 at https://mysubsidi.kpdn.gov.my.

Malaysian diesel prices still one of the cheapest

Although diesel subsidies have been lifted, leading to a price of RM3.55 per liter at petrol stations, Malaysia still boasts some of the lowest diesel prices in the region compared to neighboring countries like Thailand and Indonesia, where prices are RM4.24 and RM4.37, respectively. However, public concern remains high about the potential impact of subsidy removal on the cost of daily goods. On the other hand, some consumer groups and business associations are optimistic that the savings from the discontinued subsidy will be redirected to public initiatives that benefit all Malaysians.

Also Read:  Application for Budi Madani subsidy assistance for private diesel vehicle owners, farmers, opens today - Here's how to apply