Nabil Luqman

0f9d2dd4f71434084e2b6094de1865e23abb37bb9f28ca51feeabee679ec9be2

Social

government

finance

subsidy

diesel

priceincrease

marketprice

BudiMadani

Since February 13, 2021, the price of diesel has remained consistently at RM2.15 per litre due to government subsidies. However, under the new leadership of Dato' Seri Anwar Ibrahim, it appears that Malaysians accustomed to this low price will no longer benefit from the subsidy.
Saying Goodbye To Diesel Subsidy
<img src="https://r2.myc.my/72aa502cf3afe89d63fd23ef873b29ad5cd9322066d1b4b2fd515abd31c6e85c" />
The government has announced a new diesel price of RM3.35 per litre, according to Second Finance Minister Amir Hamzah Azizan. Speaking at a press conference today, Amir explained that this price reflects the market rate without subsidies, based on the May 2024 average using the automatic pricing mechanism formula.
This new diesel price will be reviewed on a weekly basis.
Amir also revealed that 30,000 private diesel vehicle owners from the B40 category will receive RM200 under the Budi Madani subsidy programme.
<img src="https://r2.myc.my/e57b4aaee6f019fe2606fc0ebabe2d7ba8172b027d26c74d493bb136cf8711b7" />
&ldquo;The government will closely monitor the situation to prevent price instability. We aim to reduce leakage losses, which currently amount to RM4 billion per year,&rdquo; Amir stated.
However, the previous diesel price of RM2.15 per litre will remain unchanged for Sabah, Sarawak, and Labuan.
The government hopes these targeted diesel subsidies will curb smuggling and leakage that exploit national resources. &ldquo;The people also bear the impact of these activities. Through these targeted subsidies, smuggling and misuse will no longer be lucrative. They will be drastically reduced,&rdquo; Amir added.
Finance ministry figures show that subsidised diesel consumption surged from 6.1 billion litres in 2019 to 10.8 billion litres in 2023, despite a negligible increase in the number of diesel vehicles. Consequently, diesel subsidies skyrocketed from RM1.4 billion in 2019 to over RM14.3 billion in 2023.
&ldquo;This indicates that the subsidies provided are &lsquo;leaking&rsquo; and not benefitting the targeted groups,&rdquo; Amir pointed out.
He emphasized that these losses, amounting to billions of ringgit, undermine the government's capacity to safeguard public interests.
<img src="https://r2.myc.my/bb5fb040a9b3e402c390bef027eb7baac85e7dba87900e95edc024d46871f241" />
Despite the price hike, the new diesel rate remains one of the lowest globally. In comparison, diesel sells at RM4 per litre in Thailand, RM4.50 in Indonesia, and nearly RM9 in Singapore.
Own a diesel vehicle?
<ul>
<li>For Malaysian Citizens: If your household income is below RM100,000 per year, you are eligible to receive RM200 in monthly assistance.</li>
<li>For Companies: If your company operates any of the 33 types of vehicles listed below, you can apply for the SKDS fleet card. There is no application deadline.</li>
</ul>
For more details and to apply for this program, visit <a href="https://budimadani.gov.my/">budimadani.gov.my</a>.
<img src="https://r2.myc.my/61f7922312edc0c016479dd3bcad2d5782eca8584de3c5bcc477f3891db09d46" />
Won&rsquo;t The Price Of Goods Go Up?
<img src="https://r2.myc.my/40855da935224f09f65d48d8321738db5486af592c8f472387124c2af8d1cd73" />
Now there&rsquo;s a saying that prices of goods can increase, is that true? Unfortunately yes, if the price of diesel increases, it often leads to higher costs for goods. Here's why:
<ol>
<li> Transportation Costs: Diesel is a primary fuel for trucks, ships, and trains that transport goods. An increase in diesel prices raises transportation costs, which are usually passed on to consumers. </li>
<li> Production Costs: Many industries use diesel-powered machinery and generators. Higher diesel prices increase operational costs, which can lead to higher prices for finished goods. </li>
<li> Supply Chain Impact: Increased transportation and production costs can affect the entire supply chain. As each stage becomes more expensive, the final product price typically rises. </li>
<li> Inflation: Higher fuel prices can contribute to overall inflation, where the cost of living and prices for a wide range of goods and services increase.</li>
</ol>
Therefore, an increase in diesel prices generally results in a ripple effect throughout the economy, leading to higher costs for goods and services.
We'll soon see how netizens react to this change, and let's hope the price of goods doesn't skyrocket. With the cost of living already high, the last thing anyone wants is for it to climb even further.
What are your thoughts on this? Let us know in the comments.
&nbsp;
*Sources: Visual and Reference Credits to Social Media &amp; various cross-references for context.
FOMO much? Follow our&nbsp;<a style="color: #ff0000;" href="https://www.facebook.com/mycclub/">Facebook</a>&nbsp;and&nbsp;<a style="color: #ff0000;" href="https://www.instagram.com/myc_news/?hl=en">Instagram</a>&nbsp;for more updates.

Farewell to our subsidies. However, the RM2.15 per litre rate will remain unchanged in East Malaysia (for now).

7c327c4d0576613dad2e7b4a955317abd549a2ee75a7d85393ea440a839d7fba

Government Sets Diesel Price At RM3.35 Per Litre For Peninsular Malaysia

Government Sets Diesel Price At RM3.35 Per Litre For Peninsular Malaysia

Farewell to our subsidies. However, the RM2.15 per litre rate will remain unchanged in East Malaysia (for now).

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