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RETAIL prices of petrol and diesel in Malaysia have been maintained for the week of 11 to 17 June 2026, as the government projects a continued heavy subsidy burden of around RM3.5 billion per month despite recent stabilisation in global crude oil prices.
The decision was made in accordance with the Automatic Pricing Mechanism, which tracks average international oil price movements from the previous week.
According to the Ministry of Finance, the subsidy burden for RON95 and diesel has fluctuated sharply in recent months, reflecting global energy market volatility.
Monthly fuel subsidies stood at around RM700 million in January 2026, before surging to nearly RM5 billion in March and peaking at RM7.5 billion in April following tensions in West Asia that pushed Brent crude oil prices as high as US$120 per barrel.
With global oil prices now moderating to around US$90 per barrel, the government said the estimated subsidy burden has eased but remains substantial at about RM3.5 billion per month.
Of this, approximately RM2 billion is attributed to RON95 subsidies, while diesel subsidies account for about RM1.5 billion monthly.
The ministry said global oil markets, while more stable in recent weeks, continue to be influenced by supply uncertainties, inventory levels and seasonal demand across key regions.
It stressed that Malaysia’s fuel supply remains stable and sufficient, with forward planning in place to ensure continuity of supply in the coming periods.
At the same time, the government continues to strengthen long-term energy security measures and targeted subsidy mechanisms as global supply conditions remain uncertain.
Officials said the targeted subsidy approach helps reduce cost pressures on households while ensuring essential sectors continue to operate smoothly in a challenging global environment.
The government also encouraged more efficient fuel consumption through better travel planning and reduced wastage, in line with broader efforts to strengthen national resilience.
For the period of 11 to 17 June 2026, retail fuel prices remain unchanged as follows: RON97 at RM4.35 per litre, RON95 at RM3.72 per litre, and diesel in Peninsular Malaysia at RM4.67 per litre.
Subsidised fuel prices under various government schemes were also maintained.
Under the BUDI MADANI RON95 programme, eligible recipients continue to pay RM1.99 per litre, benefiting more than 14 million Malaysians.
The ministry illustrated that at the unsubsidised RON95 price of RM3.72 per litre, a consumption of 200 litres would cost RM744. Under the subsidised rate of RM1.99, eligible users pay RM398, generating monthly savings of about RM346.
Diesel subsidies also remain significant, with the unsubsidised price of RM4.67 per litre compared with subsidised rates of RM2.15 per litre under targeted schemes in Sabah, Sarawak and Labuan.
The government said the gap highlights continued efforts to cushion transportation and logistics costs while maintaining fiscal discipline.
It added that Malaysia will continue balancing consumer protection with responsible fiscal management and energy security in an increasingly uncertain global environment.
Ministry of Finance officials reiterated that subsidy rationalisation remains a key part of the government’s medium-term fiscal strategy. - June 10, 2026
