Skip to main content

Malaysia increases diesel prices by 56% as it moves away from subsidies

The Malaysian Government has increased the new ceiling price of diesel in peninsular Malaysia to MYR3.35/l (US$0.71/l), up from MYR2.15/l (US$0.45/l) previously. This 56% increase comes as the government begins shifting away from costly fuel subsidies and start aligning diesel prices with market prices. 

Diesel prices will remain at MYR2.15/l in the Malaysian territories of Borneo Island (Sabah and Sarawak), as well as for eligible logistics vehicles under the government's subsidised diesel control system.

By cutting diesel subsidies, the Malaysian Government expects to save MYR4bn (US$847m) in government spending each year. The country’s diesel subsidy bill alone has risen 10-fold from MYR1.4bn (US$297m) in 2019 to MYR14.3bn (US$3bn) in 2023.