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Malaysia to Lower Subsidised Diesel Price for Citizens from July

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The Malaysian Finance Ministry will lower the price of subsidized diesel for Malaysian citizens to 2.10 Malaysian ringgit ($0.50) per litre effective July, it said on Sunday.

The reduction aims to ensure a uniform diesel subsidy for Malaysian citizens across the country. Non-citizens and ineligible parties will however have to purchase diesel at unsubsidized prices, in part to tackle smuggling, according to a statement.

In the Malaysian states of Sabah and Sarawak, diesel is sold at a subsidized retail price of 2.15 ringgit/litre at all outlets, while it is available at a non-subsidized retail price of 4.37 ringgit/litre in Peninsular Malaysia.

The subsidy will ensure that non-citizens in Sabah and Sarawak will pay the aligned market price for diesel, while locals will pay a reduced price of 2.10 ringgit/litre, the statement said.

"In the context of the West Asian crisis which continues to put pressure on global oil supplies, this step is important to ensure that Government subsidies only reach Malaysians and reduce the leakage and smuggling of subsidized diesel," the statement added.

Diesel subsidies will be provided to Malaysians through a verification system that uses MyKad, Malaysia's national identity card.

Additional details on the subsidy will be provided by Second Finance Minister Amir Hamzah Azizan on Monday, the statement said.

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