At RM3.35 per litre, Malaysia’s new diesel pump price is still the lowest in Southeast Asia except for Brunei

Click to enlarge

Even with the removal of blanket subsidy in favour of targeted cash handouts, Malaysia’s new diesel pump price is the still the cheapest in ASEAN except for Brunei.

The finance ministry released the infographic above that compares Malaysia’s new RM3.35 per litre rate with the diesel pump price in our Southeast Asian neighbours, and it’s cheaper than, in descending order, Singapore (RM8.79), Myanmar (RM5.40), Philippines (RM4.75), Cambodia (RM4.64), Laos (RM4.56), Indonesia (RM4.43), Thailand (RM4.24) and Vietnam (RM3.69).

As mentioned, the only country where diesel is sold for lower than RM3.35 is Brunei, the tiny oil-rich sultanate of just 470,910 people. There, the diesel pump price is RM1.09 per litre.

If you haven’t caught up with what happened yesterday (yes, it was announced on a Sunday), the government kicked off its fuel subsidy rationalisation programme by proclaiming that diesel prices in Peninsular Malaysia will be floated, and will retail at RM3.35 per litre starting from today, June 10.

At RM3.35 per litre, Malaysia’s new diesel pump price is still the lowest in Southeast Asia except for Brunei

This means that the price of Euro 5 B10 and B20 diesel in Pen Malaysia is now RM1.20 (or 56%) more than the previous capped price of RM2.15, which has been in place since February 2021. While not mentioned in the press statement, the price of Euro 5 B7 – which before this costs 20 sen per litre more – should be adjusted to RM3.55 per litre.

According to finance minister II Datuk Seri Amir Hamzah Azizan, the new retail price of the fuel is based on the automatic pricing mechanism (APM) formula for the month of May. He added that under the targeted diesel subsidy implementation, the government has set diesel fuel prices for eligible sectors as follows:

  • Subsidised Diesel Control System (SKDS) 2.0, which provides fleet cards to eligible logistics vehicles to mitigate the impact of the diesel price on consumer goods prices, is set at RM2.15 per litre.
  • Subsidised Diesel Control System (SKDS) 1.0 for land public transport, including school buses, express buses, ambulances and fire engines remains at RM1.88 per litre.
  • Subsidised diesel for fishermen is maintained at RM1.65 per litre.

The diesel price float move follows on the announcement made by prime minister Datuk Seri Anwar Ibrahim on May 21 that the government was set to implement targeted fuel subsidies, starting with diesel in the peninsula, with that for Sabah and Sarawak to be set aside until later. For now, diesel remains priced at RM2.15 in Sabah, Sarawak and Labuan.

At RM3.35 per litre, Malaysia’s new diesel pump price is still the lowest in Southeast Asia except for Brunei

The removal of the blanket subsidy for diesel will see targeted subsidies being dispensed via the Budi Madani assistance programme. Announced on May 27, the programme is open to private owners of diesel-powered vehicles as well as agriculture smallholders in Peninsular Malaysia, with eligible recipients in both categories set to receive RM200 cash a month.

It is worth noting that the RM200 aid will cover the missing “subsidy” for the first 167 litres of diesel. If you use any more than that per month, your fuel spend goes up. For a typical diesel pick-up doing around 10 km/l, that works out to an average mileage of 1,670 km per month before the subsidy runs out. Those whose applications for diesel subsidies have been approved by June 3 will soon be receiving their first Budi payment.

Pick-up truck owners, are you OK? RON 95 petrol users, are you ready?

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • is the SKDS 2.0 applicable to all companies? coz my KL supplier already said goods selling price will increase due to 56% diesel price hike.

    Like or Dislike: Thumb up 2 Thumb down 0
  • Ben Yap on Jun 10, 2024 at 10:36 am

    how about our salary? are ours the lowest?

    Like or Dislike: Thumb up 12 Thumb down 2
    • vincent on Jun 10, 2024 at 11:55 am

      exactly, for those paying for higher rates, what is their income? cost of living…

      Like or Dislike: Thumb up 1 Thumb down 0
      • Dah Menang Semua on Jun 12, 2024 at 9:31 am

        Brunei don’t have 1.6mil govt staffs
        Malaysia budget, 22% was from loans
        34% pay to Salary and Pensions
        13% pay to Subsidies
        Got other Solution?

        Like or Dislike: Thumb up 0 Thumb down 0
    • hazri on Jun 10, 2024 at 7:39 pm

      if our salary is the lowest, then no indonesian will come to work in malaysia.

      Like or Dislike: Thumb up 0 Thumb down 0
  • newme on Jun 10, 2024 at 10:36 am

    Name any of these countries net exporter except for Brunei?

    Like or Dislike: Thumb up 5 Thumb down 1
    • hazri on Jun 10, 2024 at 7:37 pm

      brunei tu besar sikit je dari perlis. brunei minyak murah tapi cukai tinggi, bisnes besar2 pun untuk kerabat saja, buat bangunan besar2 pun untuk kerabat saja, beli rumah besar2 pun untuk kerabat saja. brunei tu (islamic) monarki dictatorship kurang sikit je dgn korea utara. if tak bersyukur jadi malaysian, can consider migrate tu brunei.

      Like or Dislike: Thumb up 1 Thumb down 0
  • Kangkeng on Jun 10, 2024 at 10:53 am

    typical diesel pick-up doing around 10 km/l,

    haiya,
    why my smaller car lagi makan minyak

    Like or Dislike: Thumb up 1 Thumb down 1
  • tan sari on Jun 10, 2024 at 11:14 am

    “It is worth noting that the RM200 aid will cover the first 167 litres of diesel. If you use any more than that per month, your fuel spend goes up.”
    I don’t get it , for rm200, for the price of rm3.35/L you can only pump 59.7L of diesel, right?

    Like or Dislike: Thumb up 2 Thumb down 5
    • Math and comprehension, mate on Jun 10, 2024 at 2:54 pm

      The RM200 is meant to subsidize 167 liters of diesel usage on monthly basis.

      where it become RM1.20 more expensive (from RM2.15/l to RM3.35/l)

      Thus RM200/RM1.2= ~167 liters

      Like or Dislike: Thumb up 0 Thumb down 0
    • kaizen on Jun 10, 2024 at 4:18 pm

      the assumption is that the RM200 only finance the price increase, i.e. RM1.20/ltr.

      Like or Dislike: Thumb up 0 Thumb down 0
  • If you want to compare, compare with oil producing country, which country extracts oil from their own country. Then only can see who is cheapest.

    Like or Dislike: Thumb up 2 Thumb down 1
  • WeeWee on Jun 10, 2024 at 1:29 pm

    The rest of the ASEAN didn’t vote for cheap fuel price.
    We did, and you promised.

    Like or Dislike: Thumb up 3 Thumb down 2
  • But Cambodia mainly earns and uses USD, isn’t it? I remember Cambodia used USD as the main currency. if a liter of diesel is MYR4.64 then that is equal to USD1.00 for them.

    Like or Dislike: Thumb up 3 Thumb down 0
  • Kenny on Jun 10, 2024 at 3:28 pm

    To the Author Danny Chan, Please kindly explain how does your calculation works for the below statement.
    It is worth noting that the RM200 aid will cover the first 167 litres of diesel. If you use any more than that per month, your fuel spend goes up. For a typical diesel pick-up doing around 10 km/l, that works out to an average mileage of 1,670 km per month before the subsidy runs out. Those whose applications for diesel subsidies have been approved by June 3 will soon be receiving their first Budi payment. I can’t see how $200 @$3.35/L can get you 1670km. Is there something that we don’t know ?

    Like or Dislike: Thumb up 1 Thumb down 1
    • anwar menang rakyat kena kencing dan tahi on Jun 10, 2024 at 10:45 pm

      Good observation.
      This the problem of armchair writers who have never driven a loaded pick up.
      His calculations do not include the amount of load.
      A loaded diesel vehicle going up GH or CH will not achieve the mileage Danny Chan calculated!!

      Like or Dislike: Thumb up 3 Thumb down 1
  • Middle Age Diver on Jun 10, 2024 at 4:22 pm

    So despite this painful act, we are still anticipating smuggling of diesel fuel to persist ?

    Like or Dislike: Thumb up 2 Thumb down 0
  • Yes but those countries have lower roadtax and no tax for foreign imported cars. Can we have 0% tax on CBU cars then.

    Like or Dislike: Thumb up 4 Thumb down 0
  • Now that there is no more diesel subsidy, can we have lower import tax or no requirement for AP for diesel cars?

    Like or Dislike: Thumb up 1 Thumb down 0
  • Dahlan on Jun 10, 2024 at 6:53 pm

    Statment taik…we re oil producer ,1.20 is too much..

    Like or Dislike: Thumb up 1 Thumb down 0
  • VS Antony on Jun 11, 2024 at 12:30 am

    It is not correct to convert to RM for the comparison of fuel price by countries. Compare with the salary of a worker of certain trade by each country.

    Like or Dislike: Thumb up 1 Thumb down 0
  • Sohai on Jun 11, 2024 at 1:11 am

    Today it’s the lowest in SEA except Brunei. Tomorrow it’s the lowest except Brunei and Indonesia. After that it’s the lowest except Brunei, Indonesia and Vietnam. Then much later it will still be cheaper than UK and US….

    Like or Dislike: Thumb up 2 Thumb down 0
  • Fabian on Jun 12, 2024 at 10:00 pm

    Of course lower when the Malaysian currency is too damn weak… Such a stupid comparison… try do it with their own currency and earnings and living cost of the country then you can see whether is it worth it or not. Idiots

    Like or Dislike: Thumb up 1 Thumb down 0
 

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