Malaysia has set the new ceiling pump price of diesel in Peninsular Malaysia to RM3.35 per litre, up from RM2.15 per litre previously. This is effective from midnight of June 10, 2024.

Why was this announced?

According to Second Finance Minister Datuk Seri Amir Hamzah Azizan during the announcement on June 9, 2024:

“The amount of subsidised diesel increased sharply from 6.1 billion litres in 2019 to 10.8 billion litres in 2023 although the number of diesel powered vehicles did not increase significantly.

“This shows that the subsidy given was leaking, and could not be benefitted by the target group.”

Will this affect me?

According to Amir Hamzah, the leakages — which happened through illegal consumption or smuggling of diesel fuel to neighbouring countries — were due to Malaysia’s relatively cheap price of fuel. Even after this new price was announced, Malaysia’s price of diesel is among the lowest in the region.

See Malay Mail’s chart here for comparison:

How was this new price set?

Is this covered by the Budi Madani, or the Madani Subsidy Assistance Programme, launched in May 27, 2024? The Ministry of Finance has provided several infographics on the MySubsidi Diesel programme under Budi Madani.

Have a diesel vehicle?

For more information and to apply for this programme, go to budimadani.gov.my.

However:

In May 2024, several academics have expressed concern about the potential repercussions of subsidy rationalisation on the country’s elderly population, since they depend on a fixed income, among others.

Monash University Malaysia’s economist Sharon Koh said:

“When prices go up, the end consumers, often the elderly are usually the hardest hit. They have limited incomes, and if the cost of essential goods like vegetables rises, their quality of life deteriorates.”

Need to know more?

https://www.malaymail.com/news/malaysia/2024/06/10/all-you-need-to-know-about-malaysias-new-diesel-price-of-rm335-per-litre/138919