PUTRAJAYA: Diesel prices will be floated and will retail at RM3.35 per litre in the peninsula starting on Monday (June 10), says Datuk Seri Amir Hamzah Azizan.
The Finance Minister II said the price is based on the Automatic Pricing Mechanism formula for the month of May.
The previous price of diesel announced on June 5 was RM2.15 per litre, which will be maintained for Sabah, Sarawak and Labuan.
"The targeted subsidy decision (by the government) is not an easy step, but one that has been given particular attention.
"We want to curb leakages that have resulted in losses for the people and the country. We have suffered huge losses yearly and that can impede the country's economy," he said at a press conference here on Sunday (June 9).
When announcing the fuel subsidy rationalisation on May 21, Prime Minister Datuk Seri Anwar Ibrahim said subsidies for diesel would be withdrawn for "the rich and foreigners".
The diesel subsidy will first be rationalised in the peninsula and will only be implementated in Sabah and Sarawak later, which will save the nation RM4bil annually, he said.
To prevent any drastic increase in the cost of goods and services, Anwar said subsidies would be continued for traders using diesel-powered commercial vehicles and for public transportation.
Ten types of public transportation vehicles, including buses and taxis, as well as 23 goods transport vehicles, will come under the Subsidised Diesel Control System (SKDS).
Diesel subsidies will also continue for certain categories of fishermen.
Anwar added that cash aid would also be given to eligible individuals who own private diesel-powered vehicles, such as small traders and farmers, among others.
