Subsidised Diesel Price Drops to RM2.10 Per Litre Starting July 2026
SHAH ALAM – The Madani Government has announced a reduction in the subsidised diesel price for Malaysians to RM2.10 per litre nationwide, effective July 2026, through a reform of diesel subsidy targeting that is more uniform and targeted.
Prime Minister and Finance Minister, Datuk Seri Anwar Ibrahim, said the announcement was made in Bintulu, Sarawak on Sunday as part of efforts to ensure that government subsidies are enjoyed by eligible Malaysians.
According to him, the new implementation will use a MyKad-based mechanism, in line with the approach already implemented through the Budi Madani RON95 (BUDI95) programme.
He said through this reform, Malaysians will enjoy the same diesel price and a uniform purchasing method nationwide, including in Sabah, Sarawak and the Federal Territory of Labuan.
“The diesel subsidy will be channelled directly to Malaysians through MyKad verification, while non-citizens and ineligible parties will have to purchase diesel at the unsubsidised price,” he said in a Ministry of Finance media statement on Sunday.
The Ministry of Finance informed that this step is crucial amid the ongoing West Asian crisis, which continues to pressure global oil supply, while ensuring that government subsidies only reach Malaysians.
According to the ministry, the reform also aims to reduce leakage and smuggling of subsidised diesel occurring due to the significant gap between the subsidised diesel price and the unsubsidised price.
Currently, diesel is still sold at the subsidised retail price of RM2.15 per litre at all petrol stations in Sabah and Sarawak, compared to the unsubsidised diesel retail price of RM4.37 per litre in Peninsular Malaysia.
“This price difference has created room for leakage and smuggling of subsidised diesel, including to other countries,” according to the statement.
The Ministry of Finance said that through the diesel subsidy targeting reform, the retail price of diesel in Sabah and Sarawak will be aligned with the retail price in Peninsular Malaysia, thereby ending subsidy benefits for non-citizens.
At the same time, residents in Sabah and Sarawak who use diesel vehicles will enjoy a retail price reduction from RM2.15 per litre to RM2.10 per litre.
Further information regarding the implementation of the diesel subsidy targeting reform will be announced by Finance Minister II, Senator Datuk Seri Amir Hamzah Azizan on Monday.
Sinar Harian