The Malaysian government has announced that subsidised diesel for eligible Malaysians will be reduced to RM2.10 per litre nationwide starting from July 2026.
The announcement was made by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim during an event in Bintulu, Sarawak today.
According to the Ministry of Finance (MOF), the diesel subsidy will be implemented through a MyKad-based mechanism, similar to the BUDI MADANI RON95 (BUDI95) programme.
Under the new approach, eligible Malaysians will continue to enjoy subsidised diesel price of RM2.10 per litre through MyKad verification, while non-Malaysians and those who are not eligible for subsidies will have to buy diesel at unsubsidised market rates.
Subsidised diesel price to be standardised across West and East Malaysia
The move also marks a significant change to Malaysia’s diesel subsidy system, which currently differs between Peninsular Malaysia and East Malaysia.
At the moment, diesel prices in Peninsular Malaysia are floated weekly under the Automatic Pricing Mechanism (APM), while Sabah, Sarawak and Labuan continue to enjoy subsidised diesel pricing.
According to MOF, the nationwide implementation aims to ensure diesel subsidies are channelled only to Malaysians while reducing leakages and smuggling activities.
As a result, East Malaysia diesel vehicle owners will see diesel prices reduced from the current RM2.15 per litre to RM2.10 per litre, while non-Malaysians will no longer enjoy subsidised diesel pricing.
Alhamdulillah di Bintulu tadi, saya telah umumkan harga diesel bersubsidi untuk rakyat Malaysia akan diturunkan kepada RM2.10 seliter bermula Julai ini. Penurunan harga diesel ini akan dilaksanakan secara seragam di seluruh negara melalui penggunaan MyKad.
— Anwar Ibrahim (@anwaribrahim) June 21, 2026
Tatkala dunia masih… pic.twitter.com/yDDM9o6I8Z
In a post on X following the announcement, Anwar said the diesel price reduction is part of the government’s effort to ensure the benefits from economic reforms, investments and growth of the country are returned to the rakyat.
He also reiterated that the government will continue to maintain subsidised RON95 petrol at RM1.99 per litre.
Anwar also said Finance Minister II Datuk Seri Amir Hamzah Azizan will announce further details on the diesel subsidy implementation tomorrow, 22 June 2026.
Current fuel prices in Malaysia
Here’s the fuel prices in Malaysia for the week of 18th June to 24th June 2026:
- RON95 (subsidised): RM1.99/L
- RON95 (unsubsidised): RM3.72/L
- RON97 (unsubsidised): RM4.35/L
- Diesel (B10/B20) in Peninsular Malaysia: RM4.37/L
- Diesel (B7) in Peninsular Malaysia: RM4.57/L
- Diesel (B10/B20 subsidised) in Sabah, Sarawak and Labuan: RM2.15/L
- Diesel (B7 subsidised) in Sabah, Sarawak and Labuan: RM2.35/L
Based on current fuel prices, eligible diesel vehicle owners in Peninsular Malaysia could potentially save more than RM2.20 per litre once the RM2.10/L subsidised diesel price takes effect.
Hopefully tomorrow’s announcement will provide more clarity on eligibility requirements and whether the subsidised diesel will be subject to a monthly quota.
For reference, the current BUDI95 programme allows eligible Malaysians to purchase RON95 petrol at RM1.99 per litre. The programme was initially introduced with a monthly quota of 300 litres before being temporarily reduced to 200 litres per month starting in April 2026.
