KUALA LUMPUR, Nov 12 — Malaysia’s diesel consumption fell an average of 300 million litres a month after the government reformed subsidies in June last year, Deputy Finance Minister Lim Hui Ying told Parliament today.
“Before diesel subsidies were recalibrated, the average diesel consumption between January to May 2024 was around 770 million litres a month. After it was rationalised, the average use between June to December 2024 was around 465 million litres a month,” Lim said during Question Time.
“The reduction in sales indicates a decrease in leakages of diesel subsidies. We estimate that in part the decrease stemmed from less smuggling,” the Tanjung MP (DAP) added.
The federal government ended a blanket subsidy programme for diesel in June last year as part of broader fiscal reforms.
The Finance Ministry said the move could save the government RM5 billion a year, helping reduce fiscal pressure and enable funds to be redirected into more productive programmes, including beefing up the social safety net.
