Diesel subsidies for certain groups in West Malaysia will be discontinued starting 12am tonight, says Datuk Seri Amir Hamzah and will cost RM3.35 a litre.
The Malaysian government has just started cutting fuel subsidies to bolster its fiscal position starting with diesel at 12 midnight today, Sunday the 9th of June 2024. So from a subsidised selling price of RM2.15 it moves up to RM3.35.
Interestingly, this move that will save the government about 4 billion ringgit (USD852 million) annually said the Prime Minister and he has repeatedly vowed to shift away from blanket subsidies to a targeted system that mainly aids low-income groups.
It is a step in the right direction and a move that will ‘push’ for better quality diesel vehicles for the logistic and transport (tour bus) industry which have for decades been using many reconditioned and older high consumption vehicles.
Meanwhile, it must be noted that the Malaysian government subsidises not only fuel (petrol and diesel) but also cooking oil, and rice, among other items, but rising commodity prices have seen that expense climb in recent years, straining the government’s coffers.
From now until midnight tonight you will see diesel vehicle owners rushing to every fuel station to fill up on subsidised diesel fuel to save as much money as they can.
Next, we will see the subsidy on petrol being removed slowly and this will reduce the wastage incurred by Malaysians. Yes, there has been a lot of fuel wasted with idle vehicles at schools, offices and places of business when chauffeurs and car drivers wait in vehicles with the engine running to keep cool in their vehicle. This causes high emissions and bad air quality.
Will this move increase the adoption of electric vehicles amongst passenger vehicles owners? Probably by a small percentage.
