BINTULU: Malaysians will soon enjoy lower subsidised diesel prices following the MADANI Government's announcement of a price reduction for the fuel to RM2.10 per litre nationwide starting July 2026.

Prime Minister Dato' Seri Anwar Ibrahim said the move is implemented through a restructured diesel subsidy targeting system that utilises a MyKad-based mechanism to ensure government subsidies are fully enjoyed by Malaysian citizens.

According to him, the implementation of the new mechanism will standardise the pricing and purchasing methods of subsidised diesel across the country, thereby reducing leakages and smuggling activities that cause heavy losses to the nation.

“Malaysian citizens who own diesel vehicles will enjoy the price of RM2.10 per litre through MyKad verification, while non-citizens and ineligible parties will have to purchase diesel at the unsubsidised price,” he said.

He said this while speaking at the Cheque Presentation Ceremony following the status change of Bintulu Port from a Federal Port to a State Port at Bintulu Port here on Sunday.

Dato' Seri Anwar explained that the reform is highly crucial amidst the current geopolitical uncertainties that put pressure on global oil supplies and prices, particularly following conflicts in the Middle East.

He noted that the significant discrepancy between subsidised diesel prices and unsubsidised market prices all this while has opened up avenues for smuggling activities and subsidy abuse, including by foreigners.

Through this new implementation, diesel prices in Sabah and Sarawak will be streamlined with the prices in Peninsular Malaysia, subsequently ending the provision of subsidies to non-citizens who previously also enjoyed the subsidised fuel.

At the same time, Sabahans and Sarawakians using diesel vehicles will enjoy a price reduction from RM2.15 per litre to RM2.10 per litre, while citizens in the Peninsula will continue to benefit through a more efficient targeted subsidy system.

The Prime Minister also reiterated that the government remains committed to ensuring the people's welfare continues to be safeguarded through subsidy policies that are more sustainable, fair, and effective without compromising the nation's fiscal position.

Further details regarding the implementation of the restructured diesel subsidy targeting system will be announced by Finance Minister II, Senator Datuk Seri Amir Hamzah Azizan, on Monday.

Also present were Malaysian Deputy Prime Minister Datuk Amar Fadillah Yusof, Sarawak Deputy Premiers Datuk Amar Douglas Uggah Embas and Datuk Amar Professor Dr Sim Kui Hian, Sarawak Legislative Assembly Speaker Tan Sri Datuk Amar Mohamad Asfia Awang Nasar, Federal and Sarawak Cabinet Ministers, Sarawak Secretary Datuk Amar Mohamad Abu Bakar Marzuki, Deputy Ministers, heads of departments, and local community leaders. — UKASnews

Prepared by: Firdaus Materang
Photos by: Mohamad Rais
Translator: Ryan Lim