JOHOR BARU: The sale of four-wheel drives and other diesel vehicles is expected to fall due to the implementation of the diesel subsidy rationalisation, which came into effect at midnight.
"Many buyers previously chose trucks, 4x4s, and diesel vehicles despite the higher road tax because diesel was cheaper than petrol," said Mitsubishi Triton Skudai branch manager Yusof Saad.
"This price increase changes the equation," he said on the rationalisation which sees subsidies discontinued for certain categories of vehicles.
The price of diesel will be floated. The price has been set at RM3.35 per litre according to the automated pricing mechanism, up from the current price of about RM2.15 per litre.
Yusof said he anticipates a drop in vehicle sales.
The Triton Tuners Club Malaysia president also said the rationalisation would affect club activities, including community service projects and flood relief efforts.
"These missions often require heavy-duty, diesel-powered vehicles to access the rural areas with muddy roads heading to villages and the Orang Asli settlements."
He said he believed subsidies should have been removed gradually.
Previously, Prime Minister Datuk Seri Anwar Ibrahim said subsidies for diesel would be withdrawn for "the rich and foreigners."
To prevent drastic increases in the cost of goods and services, Anwar said subsidies would be continued for traders using diesel-powered commercial vehicles and public transportation.
Cash aid is also being given to eligible private diesel vehicle owners, such as small traders and farmers.