The government has kicked off its diesel subsidy rationalisation programme, with the announcement that diesel prices in Malaysia will be floated and will retail at RM3.35 per litre starting from midnight on Monday, June 10.

This means that from tomorrow, the price of diesel will be RM1.20 more than the current capped price of RM2.15, which has been in place since February 2021.

According to finance minister II Datuk Seri Amir Hamzah, the new retail price of the fuel is based on the automatic pricing mechanism (APM) formula for the month of May.

The price float for diesel follows on the announcement made by prime minister Datuk Seri Anwar Ibrahim on May 21 that the government was set to implement targeted fuel subsidies, starting with diesel in the peninsula, with that for Sabah and Sarawak to be set aside until later.

The removal of the blanket subsidy for diesel will see targeted subsidies being dispensed via the Budi Madani assistance programme. Announced on May 27, the programme is open to private owners of diesel-powered vehicles as well as agriculture smallholders in Peninsular Malaysia, with eligible recipients in both categories set to receive a RM200 monthly sum in financial assistance.

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