Yesterday, the government kicked off its fuel subsidy rationalisation programme by proclaiming that diesel prices in Peninsular Malaysia will be floated, and will retail at RM3.35 per litre starting from today, June 10.
This means that the price of Euro 5 B10 and B20 diesel in Pen Malaysia is now RM1.20 (or 56%) more than the previous capped price of RM2.15, which has been in place since February 2021. While not mentioned in the press statement, the price of Euro 5 B7 – which before this costs 20 sen per litre more – should be adjusted to RM3.55 per litre.
Subsidy is maintained for certain sectors. Subsidised Diesel Control System (SKDS) 2.0 provides fleet cards to eligible logistics vehicles to mitigate the impact of the diesel price on consumer goods prices and is set at RM2.15 per litre. SKDS 1.0 is for land public transport, including school buses, express buses, ambulances and fire engines – the price is RM1.88 per litre. Subsidised diesel for fishermen is maintained at RM1.65 per litre.
As such, in theory, the feared increase in consumer goods prices should not materialise, as commercial vehicles under the logistics sector continue to pay RM2.15 per litre for diesel. When asked about the impact of targeted diesel subsidy on Perodua, president and CEO Datuk Seri Zainal Abidin Ahmad affirmed that there will be no increase in cost for the carmaker.
“No, not much, because as mentioned by the minister, for large companies, mostly our carriers use diesel and they still enjoy (the subsidy, via fleet card), so we’ll not be affected. If any also, it’ll be very small and we will not pass (it down) to the customer, definitely,” he said at today’s MoU signing between Perodua and Malaysia Rail Link for Perodua to use the East Coast Rail Link (ECRL) for freight transportation services.
So, we cannot be sure if the prices of beef, bayam and roti canai will be maintained, but what’s confirmed is that Perodua – which sells four of every 10 cars in Malaysia – will not increase prices.
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