Anwar said the matter had been discussed with transport minister Loke Siew Fook.

“We cannot afford to reduce diesel prices now, but we can look at road tax adjustments,” he said at the 80th anniversary celebration of the road transport department at Stadium Batu Kawan today.

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, with lower rates applied in Sabah, Sarawak, Labuan, Langkawi and Pangkor.

Anwar also said the proposed tax reduction was raised in view of the estimated 1.8 million diesel vehicles in the country.

While the number is relatively small compared to the total vehicle population, he said, users in this segment were still affected by the recent fuel price increases.

Diesel prices in Peninsular Malaysia are currently fixed at RM5.12 per litre, down from RM5.97 per litre. However, this remains higher than levels before tensions in the Middle East escalated.

At a press conference later, Loke said the tax reduction was suggested by his ministry and the National Economic Action Council (MTEN) to assist vehicle owners who are not covered by any schemes such as BUDI Diesel.

“It will take some time for us to look into the implications, how much percentage of tax will be reduced, and how much revenue that will be reduced.

“It (the tax reduction) will be announced soon,” he said.