The Malaysian Finance Ministry has announced the implementation of targeted subsidies for diesel, effective on 10 June 2024. The retail price for diesel fuel has been increased to RM3.35 per litre in Peninsular Malaysia, while the retail price of diesel fuel in Sabah, Sarawak and Labuan remains at RM2.15 per litre.

The targeted diesel subsidy implementation aims to mitigate the impact of the diesel price on consumer goods prices. Under this initiative, the diesel price for eligible logistic vehicles is set at RM2.15 per litre. Subsidised diesel for fishermen and land public transport, which includes school buses, express buses, ambulances, and fire engines remains at RM1.65 and RM1.88 per litre respectively.

Besides this, the Malaysian government will be offering the BUDI Individu and BUDI Agri-Komoditi cash assistance of RM200 to eligible individuals. The BUDI Individu cash assistance is targeted towards Malaysian individuals owning diesel vehicles to offset the higher expenditure on fuel, while the BUDI Agri-Komoditi cash assistance is targeted towards small-scale farmers and commodity smallholders to mitigate the potential impact of the increased diesel price on their incomes.

Eligible individual owners of diesel vehicles, small farmers, and commodity smallholders are encouraged to apply for Budi Madani at https://budimadani.gov.my.

References

Ministry of Finance (9 June 2024). Government Implements Targeted Diesel Subsidy For Peninsular Malaysia Effective 10 June 2024. https://www.mof.gov.my/portal/en/news/press-release/program-bantuan-subsidi-madani-open-for-application