Diesel Price Malaysia Increases by RM1.20 to RM3.35 per Litre in Peninsula

Effective midnight on June 10, 2024,  diesel fuel prices across Peninsular Malaysia are set to rise by roughly 50%, from RM2.15 to RM3.35 per litre, as the government shifts from costly blanket subsidies to a targeted approach designed to primarily assist the needy.

Malaysia, which heavily subsidizes essentials like fuel, cooking oil, and rice, has seen its subsidy bill soar to record levels in recent years due to surging commodity prices, placing a significant strain on government finances. The diesel subsidy bill alone has escalated dramatically, from RM1.4 billion in 2019 to RM14.3 billion in 2023.

In an effort to curb this financial burden, the government announced last month that it plans to cut diesel subsidies, expecting to save about RM4 billion (US$853.24 million) annually. These savings will be redirected to support low-income groups.

The Finance Ministry stated on Sunday that diesel fuel prices will now be aligned with market rates. Effective today, the retail price of diesel fuel will increase to RM3.35 per litre at all petrol stations across Peninsular Malaysia. This price reflects the unsubsidized market rate based on the May 2024 average, calculated using the Automatic Pricing Mechanism formula.

However, the price will remain at RM2.15 per litre in Malaysian states and territories on Borneo and for eligible logistics vehicles under the government's subsidized diesel control system. Additionally, lower diesel prices have been set for fishermen and land public transport vehicles, such as school buses and ambulances.

Currently, diesel in Malaysia is sold at four different prices based on the subsidy category: RM1.65 per litre for fishermen, RM1.88 per litre for land public transport, RM2.15 per litre for commercial and private vehicles, and the unsubsidized market price for the commercial sector, which reached RM3.60 earlier this year.

Despite the RM1.20 hike, Malaysia’s diesel pump price remains the second lowest in ASEAN, just behind Brunei, where diesel is sold at RM1.09 per litre. In contrast, across the northern border in Thailand, the diesel pump price is RM4.24 per litre—a difference of 89 sen per litre (refer to the chart)

To mitigate the potential impact on incomes, the government will provide cash assistance to eligible Malaysian individuals owning diesel vehicles, as well as to small-scale farmers and commodity smallholders.

Will This Affect Me?

• Private Diesel Vehicle Owners: You may be eligible for the Budi MySubsidi Diesel program.
• Companies Using Diesel Vehicles: If your company uses diesel vehicles for public transportation, school buses, local buses, express buses, ambulances, fire trucks, hearses, or logistics, you can apply for the Subsidised Diesel Control System (SKDS) fleet card. If your company operates any of the 33 types of vehicles listed below, you can apply for the SKDS fleet card. There is no application deadline.

This significant policy shift marks a major step in the Malaysian government’s efforts to manage its subsidy expenditures more effectively while ensuring that support is directed to those who need it the most.

By posting your job advertisement on our platform,

you can connect with qualified candidates who are eager to contribute to your company's success!

Don't miss out on the chance to find your next great hire!

AJOBTHING: Your All-in-One Hiring Solution

With AJOBTHING, you get everything you need for hiring in one place. Our HR libraries are packed with helpful resources, and our recruiter advice is personalized to your hiring needs. No more juggling multiple platforms. With AJOBTHING, everything you need is in one convenient place. Join us today and see how we can make hiring simpler and more effective for you.

Urgently seeking candidates to hire?
Look no further! AJobThing offers an effective hiring solution with our instant job ad feature. Hire in just 72 hours! Try Now!

Read More on AJobThing:

• Career Fair Recruitment Strategy: Benefits and Employer Planning Guide
• Tips for Interviewer: How to Prepare and Conduct a Virtual Interview
• Key Performance Indicator (KPI): Definition, Types, Dashboard, Criteria and Examples
• EPF Account 3 (Akaun Fleksibel): A Quick Guide to EPF Account Restructuring
• E-Invoicing Malaysia: A Comprehensive Guideline for Business