The current market landscape shows a stark disparity: while eastern states like Sabah and Sarawak enjoy a subsidised rate of 2.15 ringgit per litre, drivers on the Malaysian peninsula face a much steeper cost of 4.37 ringgit. This price misalignment created a lucrative black market, incentivizing illicit trade across regional borders. By standardizing the cost nationwide, authorities intend to stabilize supply chains and recover losses that have plagued the domestic fuel sector.
Malaysia Slashes Diesel Prices to Curb Smuggling
Starting in July, Malaysia will cap the national price of diesel at 2.10 ringgit, approximately $0.50, per litre. The move marks a significant shift in energy policy, aimed at closing the wide price gap between subsidised and unsubsidised fuel that has fueled rampant smuggling and drained government revenue.
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