Diesel Subsidy Reform Cuts Over 300 Million Litres In Sales

Deputy Finance Minister Lim Hui Ying said diesel subsidy rationalisation has successfully curbed smuggling and misuse, cutting sales by over 300 million litres a month since June 2024.

“Commercial diesel sales have also increased after the policy took effect, which means that previously, subsidised diesel from petrol stations might have been used for commercial purposes such as machinery and electricity generators at construction sites or factories,” she told Parliament.

Diesel sales between June and December 2024 averaged 465 million litres per month, down from about 770 million litres from January to May.

Lim further mentioned that the BUDI MADANI Diesel programme has generated monthly savings of more than RM400 million, totaling around RM5 billion a year.

“These savings allow the government to fund development projects and boost social support through programmes like Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah,” she added.

The initiative also provides RM200 monthly cash aid to eligible diesel vehicle owners, farmers, and smallholders, benefiting 320,000 individuals. Meanwhile, 121,618 transport companies with 355,074 vehicles have received fleet cards under the programme.