Diesel Price Increase to RM3.35 Per Litre Effective Today, June 10, 2024.

Datuk Seri Amir Hamzah Azizan, Finance Minister 2, announced that the nationwide diesel prices will transition to a floating mechanism starting midnight on June 10. The initial retail price under this system will be RM3.35 per litre, marking an increase from the current subsidized rate of RM2.15 per litre.

This floating price approach will be subject to adjustments every Wednesday, following the established fuel price announcement procedures.

Amir Hamzah outlined four diesel pricing categories that were previously in place: fishermen were charged RM1.65 per litre, land public transport paid RM1.88 per litre, private vehicles were charged RM2.15 per litre, and the commercial sector had an unsubsidized rate of up to RM3.60 per litre.

Under the new policy, the Subsidised Diesel Control System (SKDS) 1 and 2 will streamline the categories to three. Fishermen will continue to pay RM1.65 per litre, public transport vehicles will be charged RM1.88 per litre, and fleet card holders will pay RM2.15 per litre.

He continued by highlighting that the new diesel price remains below that of neighboring countries, with diesel priced at RM4 in Thailand, RM4.50 in Indonesia, and RM9 in Singapore. This discrepancy in prices has contributed to the decision to remove diesel subsidies, as it has fueled a rise in smuggling activities.

Government data shows that diesel subsidies surged from RM6.1 billion in 2019 to RM10.8 billion in 2023, despite no significant increase in vehicle numbers, indicating a rise in smuggling incidents.

Under the Subsidised Diesel Control System (SKDS), ten types of public transport vehicles, such as buses and taxis, along with 23 goods transport vehicles, will be included.

Amir Hamzah also announced that starting from June 10, around 30,000 owners of diesel vehicles will start receiving the RM200 Budi Madani diesel subsidy allowance. The application process for this cash subsidy, called Budi Madani, will continue to be open, welcoming eligible applicants.

The Finance Ministry has provided a list of vehicles that are not eligible for the Budi Madani diesel subsidy. These include privately registered vehicles used for business purposes or by organizations, luxury diesel vehicles like Audi, BMW, Mercedes, and others less than ten years old, e-hailing vehicles, diesel motorcycles, caravans, motorhomes, tourist vans, and buses.