The Malaysian Ministry of Finance (MOF) announced a significant fuel price adjustment. Therefore, consumers in Peninsular Malaysia will see higher costs starting March 26, 2026.
This decision stems from rising global crude oil prices. Furthermore, the government is continuing its ongoing targeted subsidy program to manage national expenditure.
Detailed Breakdown of New Fuel Prices
The new weekly rates will take effect on Thursday. Below is the updated breakdown of retail fuel prices per litre across the country:
RON97: RM5.15 (+ 60 Sen)
Unsubsidised RON95: RM3.87 (+ 60 Sen)
Subsidised RON95 (BUDI95): RM1.99 (Unchanged)
Diesel (Peninsular Malaysia): RM5.52 (+ 80 Sen)
Diesel (Sabah, Sarawak, Labuan): RM2.15 (Unchanged)
Factors Behind the Massive Price Hike
Global energy market fluctuations remain the main cause of this price hike. Geopolitical tensions in West Asia pushed crude oil prices above US$100 per barrel. As a result, import costs for refined petroleum increased sharply.
Additionally, the diesel price increase marks a key milestone in the targeted subsidy initiative. By moving closer to market rates, the government aims to reduce cross-border fuel smuggling.
Mitigation Measures and BUDI MADANI Assistance
The government introduced financial measures to protect vulnerable households. Consequently, low-income citizens receive direct support to handle rising transportation costs.
BUDI95 Protection: Eligible citizens will still buy RON95 at RM1.99 per litre.
Enhanced Cash Aid: Monthly cash help for BUDI recipients increased from RM200 to RM300.
Logistics Subsidies: Public transport and logistics diesel rates remain capped via MySubsidi Diesel.
Tightened Enforcement and Regulations
The Ministry of Domestic Trade (KPDN) expanded petrol station inspections nationwide. For instance, officers are enforcing strict controls at border areas.
Furthermore, the ban on selling subsidized petrol to foreign-registered vehicles remains active. Citizens also need a special permit to buy fuel in containers over 20 litres.
Long-Term Economic Outlook
Subsidies currently cost the government over RM3 billion per month. Therefore, policy revisions are essential for fiscal sustainability. Citizens should monitor weekly price updates to plan their budgets efficiently.
