PUTRAJAYA — The subsidised diesel price for Malaysians will be reduced to RM2.10 per litre nationwide from July 2026, the Ministry of Finance said.
The ministry said the move, announced by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim in Bintulu, Sarawak, today, will be implemented through a revised targeted diesel subsidy mechanism using MyKad verification.
It said the mechanism would ensure Malaysians enjoy the same subsidised price and the same method of access throughout the country, including in Sabah, Sarawak and the Federal Territory of Labuan.
“Diesel subsidies will be channelled directly to Malaysians through MyKad verification, while non-citizens and ineligible parties will have to purchase diesel at the unsubsidised price,” the ministry said in a statement today.
The ministry said the measure was important amid the ongoing West Asia crisis, which continues to put pressure on global oil supply, to ensure government subsidies reach only Malaysians while reducing leakages and smuggling of subsidised diesel.
It said the significant difference between the subsidised diesel price and the unsubsidised price had created opportunities for leakages and smuggling, including across borders.
Currently, diesel is sold at a subsidised retail price of RM2.15 per litre at all petrol stations in Sabah and Sarawak, compared with the unsubsidised retail price of RM4.37 per litre in Peninsular Malaysia.
Under the revised targeted subsidy system, retail diesel prices in Sabah and Sarawak will be aligned with the retail price in Peninsular Malaysia, meaning non-citizens will no longer benefit from the subsidy.
At the same time, Malaysians in Sabah and Sarawak with diesel vehicles will enjoy a lower retail price, from RM2.15 per litre to RM2.10 per litre.
Further details on the implementation of the revised targeted diesel subsidy will be announced by Finance Minister II Senator Datuk Seri Amir Hamzah Azizan tomorrow.
