KUALA LUMPUR – The government has reaffirmed its commitment to protecting Malaysians from global economic pressures by increasing fuel subsidies to ensure petrol and diesel prices remain stable for the public.
Finance Minister II Datuk Seri Amir Hamzah Azizan announced that government subsidies for petrol RON95 have increased significantly to RM2 billion from RM700 million, while subsidies for diesel may reach up to RM1.2 billion. The RM3.2 billion increase comes as global oil prices rise due to the ongoing conflict in West Asia.
He explained that the government made the decision to expand subsidies to safeguard the rakyat from sudden price hikes while ensuring continued access to affordable fuel.
Malaysia continues to maintain some of the lowest fuel prices in Southeast Asia and globally, supported by targeted government subsidies despite volatility in international oil markets.
Amid a recent surge in global oil prices driven by rising tensions in West Asia, the unsubsidised price of RON95 increased to RM3.27 per litre, while RON97 rose to RM3.85 per litre in March 2026. However, under the government’s targeted subsidy programme, eligible Malaysian citizens continue to pay RM1.99 per litre for RON95, insulating consumers from higher market rates.
According to Amir Hamzah, Malaysia currently has sufficient supply of petrol and diesel, and the government remains prepared to manage market volatility responsibly.
He emphasised that the government’s ability to absorb the higher subsidy cost is the result of strong fiscal reforms and consolidation implemented over the past three years under the Malaysia Madani administration.
“We have sufficient energy supply, petrol and diesel in Malaysia, but we must remember that we do not know how long the conflict in West Asia will last. Therefore, it is important that we look at forward-looking steps that can reduce the burden on the people while ensuring that we continue implementing good reforms,” he said.
He made the remarks during a press conference following a Special Cabinet Meeting held today, where the government discussed strategies to address the impact of global developments on Malaysia’s economy.
The meeting, chaired by Prime Minister Datuk Seri Anwar Ibrahim, was held to examine the country’s fiscal position and closely monitor developments in Iran following the conflict in West Asia.
Meanwhile, Amir Hamzah said that although the country has sufficient oil supply until May, it does not mean the government is not seeking new supplies. Efforts to secure additional supplies are ongoing through Petronas and other oil companies in the country.
“There is a lot of speculation out there, but we are focusing on what is within our control, which is ensuring that domestic supply is sufficient.
“Supply stability is important, but that does not mean we are not looking for new supplies to replace what we use. This continues to be done through Petronas and other companies. This will also help extend the country’s supply,” he said.
He added that although the government currently has to bear a significant amount of subsidies, the country is still able to withstand the situation.
“The Prime Minister also said we can endure in the short term for about two months, but if oil prices continue (to rise), we may have to move toward a different approach.
“Since we do not know how long this issue will last, the important thing is that we move from short-term preparations to medium- and long-term plans and take the necessary measures.
“We also have opportunities to stimulate the economy in other ways. So if the domestic economy remains strong, this gives Malaysia the chance to become even better and more stable compared with other places,” Amir said.
He also noted that the country’s economic growth performance in 2025 was encouraging and will serve as a catalyst for this year amid global uncertainty and geopolitical challenges.
“Last year we saw Malaysia’s economy regain momentum. In the fourth quarter of 2025, Gross Domestic Product (GDP) growth was 6.3 percent, while for the entire year it was 5.2 percent, driven by ongoing economic reforms, domestic investment, and local spending.
“We believe these issues will continue to influence economic performance this year. However, God willing, we have started this year in a more stable and stronger position,” he said. – March 13 2026.
The post Government strengthens support as fuel subsidies rise to shield Malaysians from global oil price surge appeared first on Scoop.
