Diesel is currently US$1.05 per litre in Peninsular Malaysia, compared to a subsidised price of 50 US cents in Sabah and Sarawak
3-MIN READ3-MIN ListenThe StarPublished: 11:34am, 22 Jun 2026Malaysian consumers and small business owners have welcomed the government’s decision to introduce subsidised diesel at 2.10 ringgit (50 US cents) per litre (0.3 gallons) nationwide from July 1, although some are seeking greater clarity on fuel allocations under the MyKad-based scheme.Malaysian Tamilan Tow Truck Association president Mathevaanan Mohanaraja said the effectiveness of the initiative would ultimately depend on how much subsidised diesel each identity card holder was entitled to receive.
He noted that many users already found the allocation under the current Budi Madani RON95 (Budi95) programme insufficient for their needs.
“Our fuel consumption is high. Even 100 litres can be used up very quickly. So we are not sure if the allocation will be enough, and it probably won’t be,” he said.
“Another issue is supply. Sometimes petrol stations do not have sufficient diesel. The government may say supply is available, but the reality on the ground can be different.”
His comments came after the Finance Ministry announced that Malaysians would be entitled to purchase subsidised diesel through a MyKad-based mechanism, similar to the Budi95 petrol programme. The retail price of diesel in Sabah and Sarawak will also be aligned with that in Peninsular Malaysia.
