Malaysia Government to maintain subsidised petrol prices as global oil disruption persists: MOF
Summary
Malaysia will keep retail fuel prices below market levels for the week of 2–8 April 2026 amid a sharp rise in global oil and refined product prices. The Ministry of Finance says Brent crude has risen more than 40% and refined petrol and diesel costs have surged, putting pressure on domestic prices calculated under the Automatic Pricing Mechanism (APM).
Retail prices before subsidies for 2–8 April 2026 are: RON97 at RM4.95/litre (previously RM5.15), RON95 at RM3.87/litre (unchanged) and diesel in Peninsular Malaysia at RM6.02/litre (previously RM5.52).
Targeted subsidised prices remain in place: BUDI95 (RON95) RM1.99/litre; subsidised diesel for Sabah, Sarawak and W.P. Labuan RM2.15/litre; SKPS RM2.05/litre; SKDS RM2.15/litre. Effective 1 April 2026, the BUDI95 eligibility has been temporarily capped at 200 litres per month. Diesel purchase limits in Sabah, Sarawak and Labuan have also been introduced to curb leakage and smuggling. The government will continue short-term cash assistance for some diesel recipients and is exploring medium- and long-term subsidy reforms.
Key Points
- Government will keep retail fuel prices subsidised (below market) for 2–8 April 2026 amid global supply disruption.
- Market (pre-subsidy) prices: RON97 RM4.95/litre, RON95 RM3.87/litre, Diesel (Peninsular) RM6.02/litre.
- Subsidised rates: BUDI95 RM1.99/litre; subsidised diesel (Sabah, Sarawak, Labuan) RM2.15/litre; SKPS RM2.05; SKDS RM2.15.
- BUDI95 eligibility temporarily capped at 200 litres per month from 1 April — intended to be short-term; majority of Malaysians (avg ~100 litres/month) likely unaffected.
- Diesel purchase caps in Sabah, Sarawak and Labuan: light vehicles 50 litres/purchase; public/goods land transport 100 litres; heavy vehicles (>3 tonnes) 150 litres.
- Additional BUDI Diesel cash assistance of RM100 will be kept for April, taking some recipients to a total RM300.
- Government is considering medium- and long-term subsidy reforms to keep the mechanism sustainable and transparent.
Why should I read this?
If you drive, run a fleet, manage staff who commute or simply care about the cost-of-living, this matters. The government is keeping prices artificially low for now, but there are new caps and purchase limits that could change how often you fill up — and how your business budgets for transport. Short, sharp and practical: worth a skim if you live or operate in Malaysia.
Context and relevance
The measures come as global Brent crude and refined-product prices spike due to ongoing energy market disruption. For businesses and HR teams, rising fuel costs feed into transport allowances, commuting patterns and operational budgets; some employers may need to consider flexible working or travel allowances. Politically and economically, the temporary caps and targeted subsidies aim to protect households while the government weighs longer-term subsidy reform to maintain fiscal sustainability.