KUALA LUMPUR: The Malaysian Ministry of Finance (MOF) has announced a significant adjustment to retail fuel prices for the week of March 26 to April 1, 2026. Driven by a persistent surge in global crude oil prices and the government’s ongoing subsidy rationalization program, consumers in Peninsular Malaysia will face a steep climb in costs for diesel and unsubsidised petrol.
Detailed Breakdown of New Fuel Prices
According to the official statement released on Wednesday, the following retail prices will be effective starting Thursday (March 26):
| Fuel Type | New Price (per Litre) | Change |
| 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
The primary catalyst for this adjustment is the volatility in the global energy market. The Ministry of Finance noted that prolonged geopolitical tensions in West Asia have pushed crude oil prices above US$100 per barrel, significantly increasing the cost of refined petroleum imports.
Furthermore, the 80 sen jump in Peninsular diesel marks a critical phase in the government’s Targeted Subsidy initiative. By allowing prices to reflect market rates more closely, the government aims to curb fuel smuggling across borders while ensuring fiscal sustainability.
Mitigation Measures and BUDI MADANI Assistance
To shield vulnerable groups from the rising cost of living, the MADANI Government has strengthened its financial aid framework:
BUDI95 Protection: Eligible Malaysian citizens will continue to enjoy RON95 petrol at the subsidized rate of RM1.99 per litre.
Enhanced Cash Aid: Monthly cash assistance for BUDI Individu and BUDI Agri-Komoditi recipients has been increased from RM200 to RM300 effective this March.
Public Transport & Logistics: To prevent a spike in the price of essential goods, the subsidized diesel rate for public transport and land logistics remains at RM1.88 and RM2.15 respectively via the MySubsidi Diesel system.
Tightened Enforcement and Regulations
In tandem with the price revision, the Ministry of Domestic Trade and Cost of Living (KPDN) has intensified monitoring at petrol stations nationwide. The ban on selling RON95 to foreign-registered vehicles remains strictly in force. Additionally, purchasing more than 20 litres of fuel in containers outside of a vehicle’s tank now requires a special permit to prevent illegal stockpiling and leakage.
Conclusion
While the global energy crisis continues to place pressure on national coffers—with subsidies currently exceeding RM3 billion per month—the government maintains that these targeted measures are necessary for long-term economic stability. Citizens are advised to stay updated on weekly price reviews and utilize available government assistance portals to manage their transportation expenses effectively.