Anwar floats diesel road tax cut to offset high pump prices

BATU KAWAN, April 25 — Prime Minister Datuk Seri Anwar Ibrahim has instructed the Transport Ministry to study the possibility of reducing road tax for diesel vehicles, offering a potential relief measure for owners grappling with soaring fuel prices that the government says it cannot afford to lower directly.

The move comes after diesel prices in Peninsular Malaysia surged dramatically, jumping from around RM3 per litre in late February to over RM5.50 per litre by late March, following adjustments to the government's subsidy mechanism.

In contrast, prices in Sabah, Sarawak, and Labuan have remained fixed at RM2.15 per litre.

Speaking at the 80th-anniversary celebration of the Road Transport Department (JPJ) today, Anwar acknowledged the public's financial strain but explained the government's fiscal constraints.

“We cannot afford to reduce diesel prices now, but we can look at road tax adjustments,” he was reported saying by Free Malaysia Today, confirming that the matter had been discussed with Transport Minister Anthony Loke.

In Malaysia, road tax for diesel vehicles is generally higher than for petrol vehicles of the same engine capacity due to an additional diesel surcharge.

A potential reduction could provide direct financial relief to commercial vehicle operators and private diesel car owners, who have been hit hard by the fuel price increase.

The government currently subsidises diesel retail prices through a combination of direct cash transfers and quotas.