Diesel prices jump 56% as Malaysia revamps decades-old fuel subsidies

KUALA LUMPUR, Malaysia (AP) — Diesel price in Malaysia have jumped by more than 50%, as part of a revamp of decades-old fuel subsidies to tighten government spending and save billions of ringgit annually. The restructuring Monday eliminates blanket energy subsidies and redirects them to the needy. They’re part of economic reforms pledged by Prime Minister Anwar Ibrahim, whose government says they’re needed to build a more sustainable economy and plug losses from smuggling cheap oil to neighboring countries. Essentials including fuel, cooking oil and rice are heavily subsidized in Malaysia which has strained national finances for years. The plan is bold but risky for Anwar, who took power in 2022, as it may anger working-class voters struggling with rising cost of living.