Government Implements Targeted Diesel Subsidy For Peninsular Malaysia Effective 10 June 2024

YB Senator Datuk Seri Amir Hamzah Azizan, Finance Minister II, has announced the implementation of targeted subsidies for diesel, which involve setting the diesel fuel price to align with market price, and the simultaneous implementation of the targeted assistance for the logistics sector and disbursement of the BUDI MADANI cash assistance on Monday, 10 June 2024.

The Government has set the retail price for diesel fuel at RM3.35 per litre effective 00:00 (12:00 am) on Monday 10 June 2024 at all petrol stations across Peninsular Malaysia.

The retail price of diesel fuel for Sabah, Sarawak and Labuan remains at RM2.15 per litre.

Under the targeted diesel subsidy implementation, the Government has set diesel fuel prices for eligible sectors as follows:

• Subsidised Diesel Control System (SKDS) 2.0, which provides fleet cards to eligible logistics vehicles to mitigate the impact of the diesel price on consumer goods prices, is set at RM2.15 per litre
• Subsidised Diesel Control System (SKDS) 1.0 for land public transport, including school buses, express buses, ambulances, and fire engines remains at RM1.88 per litre
• Subsidised diesel for fishermen is maintained at RM1.65 per litre

The targeted subsidy has also been introduced in the form of cash assistance through the following initiatives:

BUDI Individu cash assistance of RM200 per month for Malaysian individuals owning diesel vehicles to help offset the higher expenditure on fuel

BUDI Agri-Komoditi cash assistance of RM200 per month for small-scale farmers and commodity smallholders to mitigate the potential impact on their incomes

YB Senator Datuk Seri Amir Hamzah explained that the Government is implementing this targeted approach in order to stem the rising leakages of subsidised diesel that have cost the nation billions in ringgit. Last year, the Government spent RM14.3 billion on diesel subsidy.

“Malaysia can ill afford to continue losing billions of ringgit to smuggling, which could otherwise be better spent to benefit Malaysians and developing our nation,” he said.

“The first batch of more than 30,000 recipients will receive their BUDI Individu and BUDI AgriKomoditi payment of RM200 into their bank accounts on 10 June 2024.

“Individuals eligible for Budi Individu and Budi Agri-komoditi who have not yet registered, can still receive their monthly cash assistance for June 2024 if they apply before the end of June 2024,” added YB Datuk Seri Amir Hamzah.

The Government urges eligible individual owners of diesel vehicles, small farmers, and commodity smallholders to apply for BUDI MADANI at https://budimadani.gov.my.

Owners of eligible logistics vehicles should also apply for fleetcards under SKDS2.0 through https://mysubsidi.kpdn.gov.my

Ministry of Finance
Putrajaya
9 June 2024