NEW Diesel Price Set At RM3.35 Per Litre Starting Tomorrow, 10 June 2024

Datuk Seri Amir Hamzah Azizan, Finance 2, said earlier today that diesel prices nationwide will be floated starting at midnight on June 10 at an initial retail price of RM3.35 per litre, up from the present subsidised retail price of RM2.15 per litre.

This floating price method would be adjusted every Wednesday, in accordance with current fuel price announcement practices.

According to Amir Hamzah, there were four diesel pricing strategies prior to this, with fishermen charged RM1.65 per litre, land public transport RM1.88 per litre, private vehicles charged RM2.15 per litre, and the commercial sector paying the unsubsidized sum of up to RM3.60 per litre.

According to the policy, there would only be three diesel categories under the Subsidised Diesel Control System (SKDS) 1 and 2, with Fishermen continuing to pay RM1.65 per litre, public transport vehicles paying RM1.88 per litre, and fleet card holders paying RM2.15.

He went on to say that the new diesel rate is still lower than in surrounding nations, with diesel costing RM4 in Thailand, RM4.50 in Indonesia, and RM9 in Singapore. This is also one of the reasons for the withdrawal of diesel subsidies, as the price disparity has led to an increase in smuggling activities.

Government figures reveal that diesel subsidies climbed from RM6.1 billion in 2019 to 10.8 billion in 2023, despite no significant increase in vehicle numbers indicating an increase in smuggling activity.

Ten types of public transport vehicles, including buses and taxis, as well as 23 goods transport vehicles, will be subject to the Subsidised Diesel Control System (SKDS).

Amir Hamzah also revealed that starting tomorrow, June 10, about 30,000 diesel vehicle owners will begin receiving the RM200 Budi Madani diesel subsidy allowance. This Budi Madani cash subsidy application will remain ongoing, and those who qualify are welcome to apply.

Some of the vehicles that would not be eligible for the Budi Madani diesel subsidy, as listed by the Finance Ministry, are private registered vehicles used for business or organisations, luxury diesel vehicles such as Audi, BMW, Mercedes, and others that are less than ten years old, e-hailing vehicles, diesel motorcycles, caravans and motorhomes, tourist vans, and buses.