Subsidised diesel price drops to RM2.10 per litre nationwide starting July 2026

The Malaysian government has announced that the price of subsidised diesel will be reduced to RM2.10 per litre across the entire country, including Sabah and Sarawak, effective July 2026. The announcement was made by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim during the Bintulu Port Status Handover Ceremony in Sarawak on 21 June 2026.

The move is aimed at ensuring all Malaysians, regardless of which state they reside in, enjoy a uniform subsidised fuel price. Under the new arrangement, any Malaysian who pumps diesel using their MyKad will pay the same rate of RM2.10 per litre.

The price reduction will be implemented through a reformed subsidy targeting mechanism that mirrors the approach already used for the BUDI MADANI RON95 (BUDI95). Through MyKad verification at the pump, subsidised diesel will be channelled directly to eligible Malaysian citizens, while non-citizens and ineligible parties will be required to pay the unsubsidised market rate instead.

“Currently, diesel is sold at a subsidised retail price of RM2.15 per litre at all petrol stations in Sabah and Sarawak, while the unsubsidised retail price in Peninsular Malaysia stands at RM4.37 per litre.

With the restructuring of diesel subsidy targeting, diesel retail prices in Sabah and Sarawak will be aligned with those in Peninsular Malaysia. As a result, non-citizens will no longer benefit from subsidised fuel prices.” – Datuk Seri Anwar Ibrahim, Prime Minister and Finance Minister

With the subsidy reform, prices in Sabah and Sarawak will be aligned with the rest of the country. This means diesel vehicle owners in both states will see a slight price reduction from RM2.15 to RM2.10 per litre, while non-citizens there will no longer benefit from the subsidy.

Further details on the implementation of the diesel subsidy targeting reform are expected to be announced by Finance Minister II Datuk Seri Amir Hamzah Azizan on 22 June 2026.

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