Govt mulls potential cost-saving plan for diesel vehicles
NIBONG TEBAL: A reduction in road tax for diesel vehicles is being mulled by the government, says the Prime Minister.
Datuk Seri Anwar Ibrahim said that lowering road tax was a viable option as fuel prices could not be reduced further.
“We cannot reduce fuel prices further at this time, but road tax can be reduced,” he said, adding that discussions have been held with Transport Minister Anthony Loke on possible relief measures, particularly through adjustments to road tax for diesel vehicles.
He noted that the proposed adjustment could benefit about 1.8 million diesel-powered vehicles nationwide, including private vehicles.
The development comes following a sharp increase in diesel prices in Peninsular Malaysia, which rose from about RM3 per litre in late February to more than RM5.50 per litre by the end of March after changes to the government’s subsidy mechanism.
Diesel prices in Sabah, Sarawak and Labuan have remained unchanged at RM2.15 per litre.
Anwar said Malaysia continues to enjoy relatively lower fuel prices compared with many other oil-producing nations, noting that even Brunei’s rates are only marginally cheaper.
He said a further reduction in fuel prices is not viable at this time due to the heavy subsidy burden, adding that any decision to lower prices would have to take into account the government’s financial capacity.
He said fuel subsidies currently cost the government about RM7bil a month, stressing that public funds are derived from the rakyat and must be channelled back for their benefit.
“Government revenue ultimately comes from taxes and income generated by the people. So, demands for cheaper fuel should be viewed in the context of national finances,” he said, adding that immediate relief could still be explored through alternative mechanisms.
Meanwhile, Loke said the ministry welcomed the mandate to review a possible reduction in road tax for diesel vehicles.
He said the move is being considered amid higher diesel prices under the current market-based mechanism, which is maintained to curb leakages, with targeted subsidies for eligible groups.
He also noted that existing assistance, such as the Budi Diesel programme, provides up to RM400 monthly, while public transport operators continue to receive structured support.
“The ministry is currently studying the scope of any reduction and its impact on revenue, with an announcement expected once the assessment is completed,” he said.
Speaking at the 80th anniversary celebrations of the Road Transport Department (JPJ) yesterday, Anwar reflected on the department’s long history, saying it had weathered numerous challenges, periods of turbulence and waves of change over the past 80 years.
During the celebration, singer Datuk Seri Siti Nurhaliza Tarudin was also honoured with the Road Safety Icon award.
Also present were Chief Minister Chow Kon Yeow, JPJ director-general Datuk Aedy Fadly Ramli and other officials.
