This comes after the domestic trade and cost of living ministry (KPDN) began the pilot project with two petrol stations in Padang Besar and Wang Kelian, Perlis.

“Initial reports showed a 13.2% decrease in the sale of subsidised diesel and 15.7% decrease for subsidised RON95 at 38 petrol stations in Perlis in the first two months (of the pilot project).

“However, the two unsubsidised petrol stations experienced a 14.75% increase in diesel sales and a 43.27% increase in RON95 sales,” Zahid said in a statement after chairing a National Action Council on Cost of Living (Naccol) meeting.

He added that the prices of unsubsidised RON95 and diesel in Malaysia – at RM3.05 and RM3.00 per litre, respectively – were still cheaper compared with the prices in Thailand. In Thailand, RON95 is RM4.62 per litre and diesel is RM4.24 per litre.

Meanwhile, in Malaysia, the subsidised price for RON95 is RM2.05 per litre and RM2.15 for diesel.

Zahid said KPDN was finalising plans to expand these unsubsidised petrol stations to other states, starting with Kelantan, then followed by Kedah, Perak, Sarawak, Sabah, and Johor.

The deputy prime minister previously said the number of unsubsidised petrol stations in the country’s border areas will be increased in stages to combat leakages in the sale of subsidised diesel.

In February, domestic trade and cost of living minister Salahuddin Ayub said the pilot programme located at the country’s borders would help generate greater revenue for Malaysia.