Malaysia

Government considering lowering road tax on diesel vehicles to help the people

The measure was among the approaches that could be implemented in the near future, compared to reducing fuel prices, which are currently facing financial constraints and supply factors.

Updated 5 months ago · Published on 25 Apr 2026 1:21PM

Government considering lowering road tax on diesel vehicles to help the people
The government is currently bearing an additional RM7 billion a month for fuel subsidies - April 25, 2026

THE government is looking into reducing road tax for diesel vehicles as an effort to reduce the cost-of-living pressure following economic uncertainty and the global energy crisis.

Prime Minister Datuk Seri Anwar Ibrahim said the measure was among the approaches that could be implemented in the near future, compared to reducing fuel prices, which are currently facing financial constraints and supply factors.

He said that although diesel use involves about 1.8 million vehicles in the country, the impact is still felt, especially in certain sectors, including transportation and business.

“Some see this as a government issue alone, but the truth is that the government represents the people, involving taxes and national revenue that is used to help the people. In this regard, following the diesel issue, I have discussed with the Minister of Transport to find a way so that in the near future the road tax for diesel vehicles can be reduced.

“At the moment, we cannot afford to lower the price of oil, but reducing the road tax is a feasible measure,” he said when speaking at the Road Transport Department (JPJ) 80th Anniversary Celebration today.

According to him, the government needs to take a cautious approach in dealing with the fuel issue, given the high subsidy burden as well as the risk of supply disruptions due to global conflicts.

The government is currently bearing an additional RM7 billion a month for fuel subsidies, so any decision must take into account the country's financial position.

At the same time, Anwar stressed that Malaysia will still maintain targeted subsidies for certain groups, including fishermen, farmers and the public transport sector, to reduce the impact of the diesel price hike.

He added that the government's current priority is not only to address the price issue, but also to ensure the stability of the country's energy supply in the face of global uncertainty. – April 25, 2026

Related News

Malaysia / 4d

Is Malaysia 'soft' in tackling the haze? The government has done everything it possibly can – PM Anwar

Malaysia / 6d

Malaysia’s K-shaped economy: Growth without shared prosperity?

Malaysia / 1w

Budget 2027: Anwar appears mindful of GE16, says analyst

Malaysia / 1w

AMK slams Eric See-To for using the Quran as a tool for political attacks

Malaysia / 1w

Budget 2027: Most reform-minded budget in history, says Guan Eng

Malaysia / 1w

Malaysia’s 2027 Budget is a steady one: people-oriented continuity rather than bold reform

Spotlight

Malaysia

Papagomo acquitted for second time in sedition case over government, Israel claims

Malaysia

ECRL fares start at RM60, with 50% discounts for children, seniors and OKU

Malaysia

DKU seeks court action against Ismail, 16 others over Negeri Sembilan royal dispute

By Alfian Z.M. Tahir

Malaysia

Kampung Manis: Dreams of 227 families to own replacement homes draw closer

Malaysia

Fadhlina takes legal action over video of 2023 Parliament speech

By Alfian Z.M. Tahir

Malaysia

Civil servants urged to turn Selangor Sultan’s anti-graft message into action

Malaysia

Animal welfare group urges probe into alleged sexual abuse of cat in viral video

Malaysia

Macron appeals for calm after France riots: 2,400 arrested, nearly 1,000 officers injured

Malaysia

Malaysia renews offer to help Indonesia fight fires

You may be interested

Malaysia

Hajiji urges GRS leaders to put Sabah first, warns against infighting

Malaysia

Fahmi condemns threats against UM student over corruption remarks

By Alfian Z.M. Tahir

Malaysia

Policeman seriously injured in machete attack during anti-drug raid in Kelantan

Malaysia

Takiyuddin’s use of ‘munafik’ sparks Dewan Rakyat row

Malaysia

Disabled workers’ public sector representation must more than triple by 2030

Malaysia

Twenty-six areas record unhealthy air quality as haze worsens

Malaysia

King appoints three Malaysian envoys to Canada, Belgium and Iran

Malaysia

Fifty-four missing Malaysians’ families may get relief as Nepal weighs faster death certificates