Diesel prices in Peninsular Malaysia will be adjusted to reflect the current market starting at midnight on Monday, June 10. The initial price at all petrol retail stations will be RM3.35 per litre, which is the market rate without subsidies, calculated based on the average price in May 2024 using the existing automatic pricing mechanism formula.
At a special press conference in Putrajaya on Sunday, Finance Minister II Datuk Seri Amir Hamzah Azizan explained that the government will continue to announce the prices of RON95, RON97, and diesel every Wednesday, as per usual practice. He highlighted that the new pricing mechanism and targeted subsidies are expected to reduce leakage and save the government RM4 billion annually. These savings will be redirected to critical sectors, enhancing public infrastructure, healthcare, and education, thereby improving the quality of life for Malaysians.
Amir Hamzah urged eligible Malaysians to apply for the BUDI Madani cash assistance. Applications made in June will qualify for assistance starting from that month onward, while late applicants will receive aid from the month they apply.
The minister noted the growing issue of diesel subsidy leakage, which cost the government RM14.3 billion last year. He emphasized that Malaysia cannot sustain such losses, as these funds are needed for national development and improving citizens' lives.
To address this, the government will set specific diesel prices for eligible sectors through the Subsidized Diesel Control System (SKDS) 2.0, using the fleet card method. Eligible sectors, including logistics, will have a diesel price of RM2.15 per litre. Additionally, the government has expanded this category to include 23 more types of vehicles, such as those transporting agricultural products, fruits, and vegetables.
The SKDS 1.0 system will continue to provide diesel at RM1.88 per litre for land public transport vehicles like school buses, express buses, ambulances, and fire engines, while fishermen will pay RM1.65 per litre. Should market prices rise sharply, the government will explore measures to stabilize diesel prices.
Amir Hamzah also announced that the first group of over 30,000 recipients would receive RM200 in BUDI Individual and BUDI Agri-Commodity assistance on Monday. He encouraged eligible individuals to apply for BUDI MADANI assistance through the official link provided by the Ministry of Finance, ensuring they receive aid promptly.
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