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THE government has affirmed its commitment to shielding the public from the sharp rise in global oil prices, announcing that subsidised fuel prices will continue despite surging costs in international markets.
The Ministry of Finance (MOF) cited that Global Brent crude prices had risen by more than 40 per cent, exceeding US$100 per barrel, while refined fuel products have climbed even higher, with petrol reaching US$150 per barrel and diesel at US$250 per barrel.
The increases have added significant pressure to domestic retail fuel prices.
“The government is committed to ensuring that the people do not bear the full impact of rising global oil prices,” MOF said in a statement today.
“Since the outbreak of the crisis in West Asia, the government has refrained from fully floating retail fuel prices and has continued to absorb a portion of the subsidy costs for petrol and diesel over the past three weeks.
Efforts to maintain subsidised petroleum for households and selected sectors will be strengthened to mitigate inflationary pressures and protect public welfare.
Under the Automatic Pricing Mechanism, retail prices without subsidies for the week of April 2 to April 8, 2026, have been set at RM4.95 per litre for RON97, down from RM5.15 on April 1, RM3.87 per litre for RON95, unchanged, and RM6.02 per litre for diesel in Peninsular Malaysia, up from RM5.52.
Targeted subsidies remain in place, with RON95 under the BUDI95 scheme priced at RM1.99 per litre, diesel in Sabah, Sarawak, and Labuan at RM2.15 per litre, and prices under the subsidised petrol and diesel control systems set at RM2.05 and RM2.15 respectively.
From April 1, the monthly eligibility cap for the BUDI95 scheme has been adjusted to 200 litres, a temporary measure until global supply stabilises.
The government has also introduced diesel purchase limits in Sabah, Sarawak, and Labuan to curb leakages and smuggling. Light vehicles are limited to 50 litres per purchase, public and goods transport vehicles under three tonnes to 100 litres, and vehicles above three tonnes to 150 litres.
As an interim response to rising diesel costs, an additional RM100 cash assistance under the BUDI Diesel programme will be maintained for April, bringing total aid to RM300 for eligible recipients under the Individual and Agri-Commodity categories.
For the future, the government is exploring medium- and long-term strategies to ensure the subsidy system remains sustainable, transparent, and effective in benefiting the public, taking into account ongoing developments in the global energy crisis and its implications for international energy markets.
The MADANI administration has emphasised that it will continue to balance fiscal responsibilities with measured public protection to safeguard both economic stability and the livelihoods of Malaysians. - April 1, 2026
