PM orders review of diesel subsidy mechanism as biodiesel blending set to increase

LocalPolitics
15 Apr 2026 • 5:23 PM MYT
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Image from: PM orders review of diesel subsidy mechanism as biodiesel blending set to increase

Government reviews diesel subsidy targeting, boosts aid measures, expands biodiesel blending, and monitors WFH rollout

PUTRAJAYA: Prime Minister Datuk Seri Anwar Ibrahim has instructed the Finance Ministry to immediately review the targeting of diesel subsidies using a mechanism similar to the Budi95 framework.

Communications Minister and government spokesperson Datuk Fahmi Fadzil stated during a weekly press conference today that the ministry is set to present its findings at either the next council meeting or the Cabinet meeting in the coming week.

On Tuesday, Economy Minister Akmal Nasrullah Mohd Nasir announced that targeted diesel assistance has been enhanced to ease the burden on vulnerable groups.

Incentives for padi farmers have been raised to RM300 per hectare per season, while cash assistance for farmers, smallholders and eligible diesel vehicle owners has been increased to RM400 per month, from the previously RM300.

Fahmi added that enforcement will be intensified to curb fuel leakages, hoarding and the smuggling of controlled diesel.

The Cabinet also reviewed the transition to higher biodiesel blends. It has been decided to increase the blending rate from B10 to B15, commencing with a B12 blend.

“This will be implemented without incurring additional costs to the government by utilising existing infrastructure,” Fahmi said.

He added that the Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad informed the Cabinet that infrastructure for B20biodiesel is currently available throughout Sarawak (excluding Bintulu), as well as in Labuan and Langkawi.

The Prime Minister of Australia is scheduled to undertake an official visit beginning tomorrow (April 16).

The visit aims to strengthen bilateral relations and will involve the signing of several memoranda of understanding.

“Discussions will focus on the global energy crisis, with further details to be announced following the high-level meeting scheduled for tomorrow,” Fahmi added.

Fahmi revealed that the Malaysian Communications and Multimedia Commission (MCMC) has identified 441 pieces of false content related to the energy crisis between March 29 and April 15.

To date, 54 investigation papers have been opened, with 42 cases remaining under active investigation.

Fahmi reminded the public that official fuel price updates are only released via Finance Ministry channels every Wednesday between 6pm and 7pm.

Following the implementation of the work-from-home (WFH) policy for the federal public service today, the Prime Minister has instructed the Chief Secretary to the Government to monitor its execution closely.

Fahmi emphasised that while WFH is in effect, public-facing services, particularly counter operations, must continue to function as usual to ensure no disruption to the citizenry.