The Malaysian government abolished its subsidy for diesel oil in Peninsular Malaysia. As of Jun 10, the selling price for the fuel in the peninsula was at MYR 3.35 MYR/kl or USD 0.71/kl, up from the previous 2.15 MYR/kl. Depending on market movements, the government will review and announce the selling price every week going forward. On the other hand, the government decided to continue the subsidy in Sabah and Sarawak in East Malaysia and the selling price was maintained at 2.15 MYR/kl in these regions.

The government is focusing on improving the budget deficit and targets to reduce the subsidy, which increased to around MYR 14.5 billion as of last year. The government expects that this revised policy will cut expenditures by MYR 4 billion annually.