Malaysia will fix diesel prices at RM2.10 per litre for eligible citizens starting July 1 under the Budi Madani Diesel programme, which uses MyKad identification for verification [1, 2, 3, 4, 5].
The new programme replaces the previous RM400 monthly cash aid with a direct fuel subsidy providing up to 200 litres per month to around 700,000 private diesel vehicle owners nationwide [3, 4]. The move aims to reduce subsidy leakages and ensure only Malaysian citizens receive subsidised diesel, with additional quotas available via online or Inland Revenue Board office applications [3, 4].
Currently, diesel is subsidised at RM2.15 per litre in Sabah, Sarawak, and Labuan, while unsubsidised diesel in Peninsular Malaysia is higher—reaching RM4.07 per litre as of June 25-30 [2, 5, 6]. The targeted subsidy programme is expected to save the government up to RM2 billion annually by cutting leakages estimated at about one billion litres of diesel per year, largely caused by smuggling and misuse of subsidies [7, 4].
"Through this targeted subsidy programme, we can save up to RM2 billion a year," said Malaysia’s Second Finance Minister Datuk Seri Amir Hamzah Azizan. "These savings will be returned to the people through the reduction of diesel prices to RM2.10 per litre." He added, "We estimate that leakages can be reduced by one billion litres of diesel a year. This will not only curb improper subsidy payments but also help ensure a stable fuel supply within the country." [7, 4]
In related developments, Malaysia’s national oil company Petronas signed agreements with Turkmenistan state companies to strengthen its upstream portfolio and access large gas reserves. Prime Minister Anwar Ibrahim noted that "Petronas’ new deals will allow Malaysia access to one of the largest gas reserves in the world, and potentially enable it to increase exports to partner countries such as China, Japan and South Korea." He also confirmed that "Russia has assured Malaysia of a long-term agreement for the supply of oil, gas and diesel for at least 20 years." [2]
Meanwhile, Singapore fuel prices eased in June amid falling global crude prices, with 95-octane petrol dropping 4 cents to SGD3.42 per litre and diesel slipping 5 to 15 cents to between SGD4.16 and SGD4.22 per litre as of June 22-23 [8, 9, 10, 11, 12]. Brent crude fell to about US$77 per barrel on June 23, down 19% from US$94 two weeks earlier following US-Iran de-escalation news [8, 9, 11, 12].
Fuel prices in Malaysia also saw retail adjustments from June 25 to 30, with RON97 petrol down 25 sen to RM4.10 and unsubsidised RON95 petrol down 25 sen to RM3.47, while Peninsular Malaysia diesel fell 30 sen to RM4.07, though subsidised prices remain unchanged [5, 6].
The Budi Madani Diesel subsidy programme officially begins July 1, when eligible diesel vehicle owners can purchase subsidised fuel at RM2.10 per litre after MyKad verification.
