{"id":18532,"date":"2024-06-17T22:01:15","date_gmt":"2024-06-17T14:01:15","guid":{"rendered":"https:\/\/www.comparehero.my\/blog\/uncategorized\/targeted-diesel-subsidies-who-is-affected.html"},"modified":"2026-03-26T15:59:26","modified_gmt":"2026-03-26T07:59:26","slug":"targeted-diesel-subsidies-who-is-affected","status":"publish","type":"post","link":"https:\/\/www.comparehero.my\/blog\/gov-programs-subsidies\/targeted-diesel-subsidies-who-is-affected.html","title":{"rendered":"Targeted Diesel Subsidies: Who is Affected?"},"content":{"rendered":"\n

In early June 2024, the Malaysian government, through the Ministry of Finance, announced that they would be retracting the blanket diesel subsidies which had  been in place previously. Subsidised diesel prices for Malaysia previously stood<\/a> at RM2.15 per litre and will now be floated at market rate. Currently, the price has risen to about RM3.35 a litre. <\/p>\n\n

There has been much talk about this rise in diesel price and how it affects the common person. Will it have a strong impact on our lives as claimed by some parties? Let’s explore this news in more detail. <\/p>\n

 <\/p>\n

Why is Malaysia Retracting Diesel Subsidies?<\/h2>\n

Albeit not a new plan, this bold and unpopular move by the government is a long time coming. As an oil producer, Malaysia has long enjoyed subsidised petrol rates, whereby its cost of fuel is significantly lower than its ASEAN neighbours. <\/p>\n

As such, Malaysian fuel, especially diesel, has been a target of smuggling<\/a>, especially at the borders. In some cases, non-Malaysian vehicles or vehicles owned by non-Malaysian entities have also enjoyed this cheaper subsidised fuel. In one example, Singapore tour operators<\/a> who have thus far enjoyed the fruits of the blanket diesel subsidy, are now forced to raise their prices with the said subsidy retraction. <\/p>\n

Cheap diesel theft is a major leakage of the nation’s funds, leading to billions of Ringgits lost every year. In fact, targeted subsidies will help the nation save up to RM4 billion per year. With targeted subsidies, only certain groups of Malaysians who are meant to enjoy affordable diesel will be able to do so.<\/p>\n

 <\/p>\n

Who Benefits From Targeted Diesel Subsidies?<\/h2>\n

\"clouds-fishermen\"<\/p>\n

The new targeted diesel subsidization move ensures that only those who need it truly benefit, rather than fuel smugglers who often buy them cheap and sell them at a higher price over the borders. With this system, certain Malaysian stakeholders will continue to enjoy diesel at a subsidised rate. Here they are, and the diesel rate they will enjoy:<\/p>\n

Sabah&Sarawak<\/span> : Diesel remains at a subsidised price of RM2.15 per litre, same as previously<\/p>\n

Logistics vehicles<\/span>: To remain at RM2.15 per litre. They will enjoy diesel subsidy under the Subsidised Diesel Control System (SKDS) 2.0 to mitigate price increases on consumer goods via fleet cards to eligible operators. <\/span><\/p>\n

Public transport<\/span>: Diesel remains at RM1.88 per litre under Subsidised Diesel Control System (SKDS) 1.0 for land public transport, including school buses, express buses, ambulances, and fire engines.<\/span><\/p>\n

Fishermen<\/span>: Subsidised diesel remains at RM1.65 per litre<\/span><\/p>\n

All operators and companies that fall under these categories should apply for their<\/a> fleet card<\/a> with the government in order to enjoy these subsidies, if they have not done so already. 

Individuals with diesel vehicles, small time farmers, and commodity smallholders are eligible for Budi Madani<\/a>, and should apply for it on the website to enjoy cash aid to offset for their diesel costs. <\/span><\/p>\n

The Budi Madani programme allows individual diesel vehicle owners and small time agricultural practitioners to enjoy a cash aid of RM200 per month, enough to offset the cost of about 166.7 litres of diesel (new price RM3.35 -old price RM2.15 = RM1.20), which will cover travel of about 2500km assuming each litre allows travel of 15km.<\/span><\/p>\n

 <\/h2>\n

Are Our Prices Going to Rise?<\/span><\/h2>\n

In theory, there should not be a significant or sharp rise in the price of consumer goods or transportation services as logistic operators continue to enjoy the same diesel prices as before, albeit using fleet cards and not under a blanket subsidy.<\/span><\/p>\n

However, there have been reports of irresponsible Malaysian companies<\/a> (who have already been issued with subsidy fleet cards) increasing the prices of their services despite being eligible for subsidised diesel, and action has been taken on them. <\/span><\/p>\n

 <\/h2>\n

Final Thoughts<\/h2>\n

The presence of blanket subsidies, especially for our fuels, have resulted in the abuse of the benefit, especially by illegal smugglers and users. This abuse has caused Malaysia to lose billions if Ringgit, bleeding our funds that could otherwise be used to benefit the country and its citizens, such as being channeled to development, education and healthcare. <\/p>\n

Malaysians can continue to enjoy subsidised diesel, with a special application  & approval from the government. Therefore, we hope that you’ll contact the relevant departments to ensure you can enjoy special diesel prices as Malaysians. <\/p>\n

\"Subscribe<\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

In early June 2024, the Malaysian government, through the Ministry of Finance, announced that they would be retracting the blanket diesel subsidies which had  been in place previously. Subsidised diesel prices for Malaysia previously stood at RM2.15 per litre and will now be floated at market rate. Currently, the price has risen to about RM3.35…<\/p>\n","protected":false},"author":268230141,"featured_media":267,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_wpcom_ai_launchpad_first_post":false,"_jetpack_hide_featured_image":false,"_jetpack_featured_image_duplicate_dismissed":0,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"{title}\n\n{excerpt}\n\n{url}","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpas_customize_per_network":false,"jetpack_post_was_ever_published":false},"categories":[441],"tags":[],"class_list":["post-18532","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gov-programs-subsidies"],"yoast_head":"\nTargeted Diesel Subsidies: Who is Affected? - CompareHero<\/title>\n<meta name=\"description\" content=\"Targeted diesel subsidies have just been announced by the Malaysian government in June 2024. 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But do you know which one should you use? It is not that difficult to look for one actually. There\u2026","rel":"","context":"In "Shopping & Promotions"","block_context":{"text":"Shopping & Promotions","link":"https:\/\/www.comparehero.my\/blog\/shopping-promotions"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2020\/01\/petrol.png?fit=1024%2C768&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2020\/01\/petrol.png?fit=1024%2C768&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2020\/01\/petrol.png?fit=1024%2C768&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2020\/01\/petrol.png?fit=1024%2C768&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":17954,"url":"https:\/\/www.comparehero.my\/blog\/government-budget\/budget-2024-whats-in-it-for-you.html","url_meta":{"origin":18532,"position":2},"title":"Budget 2024: What’s in it for you?","author":"CompareHero","date":"17 October 2023","format":false,"excerpt":"The Malaysia Budget 2024, themed \"MADANI Economy: Empowering the People,\" allocates RM393.8 billion to stimulate economic growth, reduce the cost of living, and enhance the well-being of the rakyat. Here are the key highlights: Welfare Assistance (RM58.1 Billion) Nearly 50% of the allocation is aimed at controlling the prices of\u2026","rel":"","context":"In "Government Budget"","block_context":{"text":"Government Budget","link":"https:\/\/www.comparehero.my\/blog\/government-budget"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2026\/02\/FI_budget2024.png?fit=1200%2C629&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2026\/02\/FI_budget2024.png?fit=1200%2C629&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2026\/02\/FI_budget2024.png?fit=1200%2C629&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2026\/02\/FI_budget2024.png?fit=1200%2C629&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2026\/02\/FI_budget2024.png?fit=1200%2C629&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":18437,"url":"https:\/\/www.comparehero.my\/blog\/transport\/petrol-prices-in-malaysia-2017.html","url_meta":{"origin":18532,"position":3},"title":"Petrol Prices In Malaysia 2017","author":"CompareHero","date":"25 March 2019","format":false,"excerpt":"\u00a0 How Petrol Prices are Determined in Malaysia Historically, the price of petrol in Malaysia was subsided by the government to keep the price artificially low. However, this changed in recent years when the government adopted a\u00a0managed float system\u00a0where the price of fuel would be announced monthly. Price adjustments are\u2026","rel":"","context":"In "Transport"","block_context":{"text":"Transport","link":"https:\/\/www.comparehero.my\/blog\/transport"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2019\/03\/petrol-for-car.png?fit=1024%2C768&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2019\/03\/petrol-for-car.png?fit=1024%2C768&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2019\/03\/petrol-for-car.png?fit=1024%2C768&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2019\/03\/petrol-for-car.png?fit=1024%2C768&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":18097,"url":"https:\/\/www.comparehero.my\/blog\/money-tips\/financial-privileges-malaysians-get-to-enjoy.html","url_meta":{"origin":18532,"position":4},"title":"Financial Privileges Malaysians Get To Enjoy!","author":"CompareHero","date":"23 August 2023","format":false,"excerpt":"Malaysia is going to celebrate its 66th anniversary of independence this year! To help you get in the patriotic mode, we have listed a few financial privileges only Malaysians get to enjoy in this article.\u00a0 Housing schemes for all income groups in Malaysia \u00a0 \u00a0No doubt, housing prices are getting\u2026","rel":"","context":"In "Money Tips"","block_context":{"text":"Money Tips","link":"https:\/\/www.comparehero.my\/blog\/money-tips"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2026\/02\/FI_financialpriviledge-05-4.png?fit=1200%2C629&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2026\/02\/FI_financialpriviledge-05-4.png?fit=1200%2C629&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2026\/02\/FI_financialpriviledge-05-4.png?fit=1200%2C629&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2026\/02\/FI_financialpriviledge-05-4.png?fit=1200%2C629&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2026\/02\/FI_financialpriviledge-05-4.png?fit=1200%2C629&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":18245,"url":"https:\/\/www.comparehero.my\/blog\/transport\/hybrid-electric-vs-petrol-cars.html","url_meta":{"origin":18532,"position":5},"title":"Hybrid\/Electric vs Petrol Cars \u2013 Which should you get?","author":"CompareHero","date":"26 March 2019","format":false,"excerpt":"Ah yes, the age-old question of which type of car to get; Petrol or Hybrid\/Electric. With the pursuit of renewable and clean energy, progressive individuals would advise you to get a hybrid without a second thought. But look a little closer and the answer to that question is not as\u2026","rel":"","context":"In "Transport"","block_context":{"text":"Transport","link":"https:\/\/www.comparehero.my\/blog\/transport"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2019\/03\/cars.png?fit=1024%2C768&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2019\/03\/cars.png?fit=1024%2C768&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2019\/03\/cars.png?fit=1024%2C768&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2019\/03\/cars.png?fit=1024%2C768&ssl=1&resize=700%2C400 2x"},"classes":[]}],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2026\/02\/Diesel-Subsidies.png?fit=1200%2C629&ssl=1","_links":{"self":[{"href":"https:\/\/www.comparehero.my\/blog\/wp-json\/wp\/v2\/posts\/18532","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.comparehero.my\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.comparehero.my\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.comparehero.my\/blog\/wp-json\/wp\/v2\/users\/268230141"}],"replies":[{"embeddable":true,"href":"https:\/\/www.comparehero.my\/blog\/wp-json\/wp\/v2\/comments?post=18532"}],"version-history":[{"count":1,"href":"https:\/\/www.comparehero.my\/blog\/wp-json\/wp\/v2\/posts\/18532\/revisions"}],"predecessor-version":[{"id":56395,"href":"https:\/\/www.comparehero.my\/blog\/wp-json\/wp\/v2\/posts\/18532\/revisions\/56395"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.comparehero.my\/blog\/wp-json\/wp\/v2\/media\/267"}],"wp:attachment":[{"href":"https:\/\/www.comparehero.my\/blog\/wp-json\/wp\/v2\/media?parent=18532"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.comparehero.my\/blog\/wp-json\/wp\/v2\/categories?post=18532"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.comparehero.my\/blog\/wp-json\/wp\/v2\/tags?post=18532"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}