PETALING JAYA: Starting July, Malaysians will be entitled to subsidised diesel at the price of RM2.10 per litre.
The Finance Ministry said the implementation of the nationwide price reduction of the subsidised diesel would be carried out via a MyKad-based mechanism, similar to Budi Madani RON95 (Budi95).
"With this, Malaysians will enjoy the same price and method nationwide. Diesel subsidies will be channelled directly to Malaysians using MyKad verification, while diesel for non-citizens and ineligible parties will be unsubsidised.
"Currently, diesel is sold at a subsidised price of RM2.15 per litre at all petrol stations in Sabah and Sarawak, compared to the unsubsidised price of RM4.37 per litre in Peninsular Malaysia.
"With the diesel subsidy targeting reform, the retail price of diesel in Sabah and Sarawak will be aligned to the retail price in Peninsular Malaysia and non-citizens will no longer enjoy the subsidy," the ministry said in a statement on Sunday (June 21).
Malaysians in Sabah and Sarawak with diesel vehicles will also enjoy a reduction in the retail price from RM2.15 per litre to RM2.10 per litre.
The ministry said it is important that government subsidies only reach Malaysians.
"The significant price difference between subsidised and unsubsidised diesel has created room for leakage and smuggling, including to overseas markets," read the stratement.
Further information on the implementation of the diesel subsidy will be announced by Finance Minister II Senator Datuk Seri Amir Hamzah Azizan on Monday (June 22).
