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THE Government has moved to cushion households and key industries from a sharp rise in fuel costs, maintaining subsidised prices even as unsubsidised pump rates climb in line with earlier global oil spikes, the Ministry of Finance said today.
The latest price adjustments, effective from 9 to 15 April 2026, reflect sustained increases in global petroleum costs over the past five weeks rather than the more recent easing in crude prices following a ceasefire in West Asia.
Authorities said the pricing lag means consumers are still feeling the impact of earlier market highs.
“This is because pump prices in this country are determined based on the average price of petrol and diesel in the previous week, and not the current day’s price,” the ministry said.
Over the preceding weeks, global benchmarks rose steeply amid an energy crisis in West Asia, pushing petrol products to around US$150 per barrel and diesel to approximately US$250 per barrel. These elevated costs, including higher logistics and insurance expenses, continue to feed into domestic retail pricing.
Under the Automatic Pricing Mechanism, unsubsidised RON97 is now set at RM5.35 per litre, up from RM4.95, while RON95 rises to RM4.27 from RM3.87. Diesel in Peninsular Malaysia increases to RM6.72 per litre from RM6.02.
Despite these increases, the government has opted to retain targeted subsidies to limit the impact on consumers. RON95 under the BUDI95 programme remains fixed at RM1.99 per litre, while diesel prices in Sabah, Sarawak and Labuan are held at RM2.15 per litre.
Controlled prices under existing fuel management systems are maintained at RM2.05 for petrol and RM2.15 for diesel.
The ministry also confirmed that the monthly cap for subsidised RON95 under BUDI95 has been reduced to 200 litres from 1 April, describing the move as temporary pending stabilisation in global supply conditions.
To address leakages and cross-border smuggling, tighter controls on diesel purchases have been introduced in East Malaysia, with transaction limits imposed according to vehicle type.
In parallel, additional financial support will continue, with a RM100 top-up under the BUDI Diesel scheme in April, bringing total assistance to RM300 for eligible recipients in individual and agri-commodity categories.
The government said it remains vigilant to external developments and stands ready to adjust policies to safeguard domestic energy supply and affordability.
“The MADANI Government will continue to balance fiscal needs with the protection of the people carefully and prudently to ensure the country’s economic wellbeing and the livelihood of its people remain safeguarded,” the ministry said. - 8 April 2026