Malaysia will begin floating diesel fuel prices on Monday, starting at 3.35 ringgit ($0.72) per litre, state news agency Bernama reported, citing second finance minister Amir Hamzah Azizan.

Malaysia said last month its plan to cut diesel subsidies this year is expected to save about 4 billion ringgit annually. The government has been seeking to shift away from blanket subsidies to a targeted approach aimed at supporting low-income groups.

Diesel prices are currently set at 2.15 ringgit per litre, the ministry said in a statement on June 5.

($1 = 4.6880 ringgit)

(Reporting by Rozanna Latiff; Editing by Kim Coghill)