Why is Malaysia cutting diesel prices nationwide from July, and what problem does this aim to solve?

Malaysia is cutting diesel prices nationwide to 2.10 ringgit per litre from July to eliminate the current price gap between subsidised diesel (2.15 ringgit per litre in Sabah and Sarawak) and unsubsidised diesel (4.37 ringgit per litre in Peninsular Malaysia), which has led to smuggling and revenue losses, including cross-border smuggling.

What recent international energy agreements has Petronas signed, and what strategic benefits did Prime Minister Anwar Ibrahim highlight?

Petronas signed new agreements in Turkmenistan with state companies Turkmennebit and Hazarnebit to strengthen its presence in the Caspian Sea and expand its upstream portfolio; Prime Minister Anwar Ibrahim stated these deals would give Malaysia access to one of the world’s largest gas reserves and potentially increase exports to China, Japan, and South Korea, while Russia also assured Malaysia of a long-term oil, gas, and diesel supply agreement for at least 20 years.

Malaysia to Cut Nationwide Diesel Prices from July

Jun 21, 2026

Malaysia will reduce diesel prices to 2.10 ringgit per litre from July to prevent smuggling, while Petronas secures new gas agreements in Turkmenistan and Russia to bolster energy supplies.

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Malaysia to Cut Nationwide Diesel Prices from July

Malaysia to Cut Nationwide Diesel Prices from July

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