Why was this announced?

• This is part of the Malaysian government’s plan to stop leakages in subsidised diesel. It believed that this will save around RM4 billion in government spending each year.

• Putrajaya has since said that it has no choice but to implement this now, despite mounting criticism from the public.

Will this affect me?

• This only applies to peninsular Malaysia, for now.

• If you are a private owner of a diesel vehicle, you may be eligible for the Budi MySubsidi Diesel programme. More information on this below.

• If you are a company using diesel vehicles for public transportation, school buses, local buses, express buses, ambulances, firefighters. hearses and logistics, you can apply for the Subsidised Diesel Control System (SKDS) fleet card.

Have a diesel vehicle?

• If you are a Malaysian citizen with a household income below RM100,000 per year — you can get RM200 aid each month.
• If you’re part of a company with any of the 33 types of vehicles listed below — you can apply for the SKDS fleet card. There is no deadline to apply.

What have people said about this?

Several diesel users were anxious about the MySubsidi programme and the potential rise in costs of living. One of the users polled by Malay Mail said:

• "I fear the increase in diesel will affect the general cost of living. This increase is a big jump. It doesn't give time for the users to get adjusted gradually.”

Writing to Malay Mail, Jeremy Lim, a senior data analyst at for the UN Sustainable Development Solutions Network and a writer and editor of Jentayu, a progressive writing collective, cautioned over the shocking price announcement and called for gradual implementation of subsidy rationalisation:

• "The diesel subsidy rationalisation is the form announced in the evening on 9th June 2024 could hardly be considered gradual. A more than 50 per cent increase with no stages of adjustment over a certain time period is bound to be perceived by firms and consumer as a shock. Despite the Budi Madani subsidies and the exemption for certain vehicles, it will not soften the notion among all Malaysians that prices of most goods will rise, even if they do not know what proportion is appropriate.”

In May 2024, several academics have expressed concern about the potential repercussions of subsidy rationalisation on the country’s elderly population, since they depend on a fixed income, among others. Monash University Malaysia’s economist Sharon Koh said:

• "When prices go up, the end consumers, often the elderly are usually the hardest hit. They have limited incomes, and if the cost of essential goods like vegetables rises, their quality of life deteriorates.”