One of the easiest gimmicks to scam voters to win elections is to create problems and then pretend to solve them, and voila, people would burst into tears in appreciation and gratitude. Taking away something before giving it back has been one of the oldest tricks used by many parents to handle misbehaving children or to get them to complete a specific task.
On Sunday (June 21), Prime Minister and Finance Minister Anwar Ibrahim announced that the government will lower the subsidised price of diesel for Malaysians to RM2.10 per litre from July 1, 2026. The move will be implemented through a restructured diesel subsidy mechanism using MyKad verification, just like how the RON95 petrol subsidy works currently.
That’s a spectacular U-turn from the same Prime Minister who cut diesel subsidies two years ago. Since June 2024, the price of diesel has been floated in Peninsular Malaysia while East Malaysia still enjoys subsidies as diesel-powered 4×4 vehicles are considered a necessity because of the rugged terrain there. In April, chaos erupted as diesel prices hit a new high of RM6.72 per litre in Peninsular Malaysia.
Mr Anwar now brags that under the new approach, eligible Malaysians will continue to enjoy subsidized diesel at a standardized price nationwide, while non-citizens and ineligible users will be required to pay market-based rates without subsidies. Hilariously, he claims the reform is designed to ensure that fuel subsidies are delivered directly to Malaysians while reducing leakages and smuggling.
Exactly what type of reform he is trying to scam the voters when the same reasons – reduce leakages and smuggling – were used back in June 2024 to “cut diesel subsidies”, only to use it again now to “restore diesel subsidies”. The contradiction and inconsistency are jaw-dropping and breathtaking, to put it mildly. From the beginning, the PM had no idea what he was doing.
Diesel is currently sold at a subsidized price of RM2.15 per litre in the eastern states of Sabah and Sarawak, compared with RM4.37 in the Malaysian Peninsular. That alone speaks volumes about hypocrisy, double standards, discrimination and inconsistency. Under the new policy, motorists will pay less than half of the current Peninsular Malaysia rate.
The price gap between diesel sold in Sabah and Sarawak and that in Peninsular Malaysia had created room for revenue leakage and the smuggling of subsidised diesel, including across borders. But it took the genius PM Anwar Ibrahim two years to realize the problems, despite warnings, complaints and reports about the “loopholes”.
When the brilliant Madani Government first set the retail price for diesel fuel at RM3.35 per litre effective June 10, 2024 at all petrol stations across Peninsular Malaysia, Amir Hamzah Azizan, Finance Minister II, also announced fleet cards to eligible logistics vehicles to mitigate the impact of the diesel price on consumer goods prices – set at RM2.15 per litre.
At the same time, “BUDI Individu” cash assistance of RM200 per month was introduced for Malaysian individuals owning diesel vehicles to help offset the higher expenditure on fuel. Amir Hamzah argued that the government had to use the targeted approach to stem the rising leakages of subsidized diesel that have cost the nation RM14.3 billion on diesel subsidy a year earlier (2023).
So, does that mean the “targeted diesel subsidy” has failed after two years of disaster? If the implementation has been a huge success, why Anwar suddenly announced the cut of diesel prices nationwide on Sunday – effectively restoring the diesel subsidies? Yes, call it whatever you like, but the clueless Finance Minister is actually restoring the diesel subsidies.
The snake oil salesman, however, has discovered an excellent excuse to spin and twist his latest U-turn. Anwar argues that the memorandum of understanding (MOU) on a peace agreement between the United States and Iran contributes to the decline in fuel prices. But the Iran War only began on February 28, 2026, whilst the “targeted diesel subsidy” already began on June 10, 2024.
What’s his perverted logic that diesel price was hiked RM3.35 per litre “before” the Iran War starts, but is now slashed to RM2.10 per litres even before the Iran War officially ends? Crucially, how does Madani plan to reduce diesel subsidy, which amounted to RM14.3 billion in 2023, when Amir floated the price of diesel to align with market prices but is now being reversed by Anwar?
Interestingly, Finance Minister II Amir Hamzah – another snake oil salesman – said the new Budi Madani Diesel (Budi Diesel) programme is expected to generate savings of up to RM2 billion annually. But that’s only RM166 million monthly. Because he dares not use the “monthly figure”, he chose the yearly figures to trick the mind of the people about “billions” in savings rather than millions.
Prior to the conflict, the government spent about RM800 million a month on petrol and diesel subsidies. However, subsidy costs surged to nearly RM4.7 billion in March and RM4.9 billion in April this year following sharp increases in global oil prices due to the Iran War. This means the diesel subsidies have actually increased to the tune of billions, despite claims of RM2 billion yearly saving.
For obvious reason, the finance ministry did not say how the government planned to finance the additional subsidy (with price of diesel plunges from current RM4.37 to RM2.10 per litre starting July 1), with public coffers already under strain from rising fuel costs stemming from the war in Iran. Amir was just playing with arithmetic figures to hoodwink gullible people.
More importantly, if indeed MyKad verification can prevent diesel leakages that reach billions of ringgit as claimed by PM Anwar, then why didn’t his government do it from the beginning, but waited till the Johor and Negeri Sembilan state elections are getting “too hot to handle” for Anwar-led Pakatan Harapan coalition? Clearly, the Premier is throwing everything, including the kitchen sink, in order not to lose elections.
Even if the new Budi Madani Diesel could not be implemented in June 2024 for whatever excuses, surely it could be rolled out together with Budi Madani RON95 in September 2025. But it didn’t. Therefore, the new diesel subsidies have absolutely nothing to do with the MOU between the U.S. and Iran, but everything to do with state elections and the next 16th General Election.
Get real – if the MOU would lead to a permanent de-escalation, ending the conflict in the Middle East, the global energy prices would drop and the Madani government could adjust the diesel price accordingly to align with market prices. Anwar did not need to artificially lower the price of diesel to RM2.10 per litre, but rather let the market force do its job. But the PM chickened out because he was terrified of something.
It appears the military intelligence or surveys landed on the desk of the Prime Minister’s Office (PMO) indicates a stunning defeat for his People’s Justice Party or Pakatan Harapan under his leadership. However, if the forked-tongue PM Anwar could easily re-introduce diesel subsidies after scrapping it, what is there to stop him from cutting the subsidies again after winning the elections?
After taking away diesel subsidies from the people, the Premier is giving it back as he desperately needs something from them – votes. But the damage control may be too little too late. After phasing out other subsidies, such as electricity tariff adjustments and removal of price controls for chickens, the diesel subsidy cuts had already led to widespread anger and dissatisfaction among the public and businesses.
Other Articles That May Interest You …
- No Good Options – Anwar To Lose Whether Election This Year Or 2027
- Johor Election Announced – PM Anwar’s PKR To Be Wiped Out
- RON95 & Fuel Subsidies – Anwar Should Call Iran For Safe & Free Passage
- Crying Crisis – But Approved 52 Million Liters Diesel To Philippines
- PM Anwar Shamelessly Demands Credit & Praise For Iran Diplomacy
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June 22nd, 2026 by financetwitter
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