Rationalization: The starting price of diesel in the Peninsula is RM3.35 per liter

PUTRAJAYA: Diesel prices will be adjusted according to the current market, starting midnight tonight (Monday, June 10), with the starting price at all petrol retail stations in Peninsular Malaysia set at RM3.35 per litre.

The price in question is the market price without subsidy based on the average of May 2024, according to the existing automatic pricing mechanism formula.

Finance Minister II, Datuk Seri Amir Hamzah Azizan, said in a special press conference in Putrajaya on Sunday that the government will announce the next price according to normal practice, which is to announce the price of RON95, RON97, and diesel every Wednesday.

Through price setting and the implementation of subsidies based on this, he said, the government expects an immediate reduction in the loss of leakage activities, which can bring savings of RM4 billion a year.

“The savings obtained by the government from this important step will ensure more resources are channeled into other critical sectors, which will directly improve the quality of life of the people, including public infrastructure, healthcare, and education for our children.

“Once again, I would like to apply. Remind Malaysians who are eligible to apply for BUDI Madani cash assistance. Those who apply in June will be eligible to receive cash assistance for that month and beyond. Those who miss out will be eligible to receive assistance for the month of application and beyond,” he added.

Amir Hamzah said that the leakage of diesel subsidies is seen to be more and more widespread, causing billions of ringgit in losses, and the government had to spend a total of RM14.3 billion on diesel subsidies last year.

He said Malaysia cannot afford to continue to cover losses of that magnitude, whereas it should be able to be used to improve the quality of life of the people as well as develop the country.

Touching on the implementation of diesel subsidy targeting, Amir Hamzah said the government will set diesel prices for eligible sectors, such as logistics, through the Subsidized Diesel Control System (SKDS) 2.0 using the fleet card method, with a price of RM2.15 per litre.

He added that the government agreed to open the category to 23 more types of vehicles, including those transporting agricultural products, fruits, and vegetables.

Meanwhile, he said, SKDS 1.0 for land public transport vehicles such as school buses, express buses, ambulances, and fire engines remains at RM1.88 per litre, while for qualified fishermen it is RM1.65 per litre.

If there is a change in the diesel market, causing the market price to increase sharply, he said, the government will look at the best way to stabilize the price.
In the meantime, Amir Hamzah said the first group, which covers more than 30,000 recipients, will benefit from BUDI individual and BUDI agri-commodity assistance amounting to RM200, which will be deposited into their bank accounts on Monday.

“Eligible individuals who have not yet applied for Individual BUDI or Agri-Commodity BUDI can still receive assistance for the month of June 2024 if they apply before the end of June 2024,” he added.

Meanwhile, the Ministry of Finance, in a follow-up media release, said that the government recommends diesel vehicle owners, small farmers, and small commodity holders who are eligible to apply for BUDI MADANI at the link https://budimadani.gov.my.

Eligible logistics vehicle owners can also apply to obtain a fleet card under SKDS 2.0 at the link: https://mysubsidi.kpdn.gov.my.