The Ministry of Finance (MOF) has confirmed that subsidised diesel will be sold using a MyKad verification mechanism beginning this July, mirroring the approach currently used under the BUDI95 programme. Under the new system, only Malaysians will be eligible to purchase diesel at the subsidised rate of RM2.10 per litre nationwide.
The diesel price reduction was first announced by Prime Minister Datuk Seri Anwar Ibrahim yesterday during an event in Bintulu, Sarawak. According to Anwar, the lower price was made possible through reforms to the targeted diesel subsidy programme.
In a statement, MOF said the move will standardise both diesel pricing and purchasing methods across the country. As with subsidised RON95 petrol, non-citizens and other ineligible parties will be required to pay the unsubsidised market price, a measure the ministry said is necessary to curb leakages and fuel smuggling while ensuring subsidies reach their intended recipients.
Malaysians in Sabah and Sarawak, who currently enjoy a subsidised diesel price of RM2.15 per litre, will see the price reduced to RM2.10 per litre. At the same time, non-citizens in East Malaysia will no longer be eligible to purchase subsidised diesel.
The announcement also confirms a direction that the government has been exploring in recent months. Earlier this year, Finance Minister II Datuk Seri Amir Hamzah Azizan revealed that Putrajaya was studying the integration of diesel subsidies into the existing MyKasih infrastructure, potentially allowing eligible motorists to purchase subsidised fuel directly through MyKad verification at petrol stations.
At the time, the government said the proposal was intended to simplify subsidy distribution while reducing opportunities for abuse. The newly announced mechanism appears to align closely with those earlier plans, although full implementation details are expected to be announced separately by Amir Hamzah.
On a somewhat related note, the government also said it was considering a reduction in road tax rates for diesel-powered private vehicles in late April, following feedback from motorists affected by diesel subsidy rationalisation. However, no decision has been announced on that front.