KUALA LUMPUR, July 1 - The government is expected to bear almost RM40 billion in petroleum product subsidies this year as a result of the increase in global oil prices following the West Asia conflicts, said the Finance Ministry (MOF).
The government had borne subsidies of nearly RM800 million per month for RON95 and diesel in January and February 2026, before rising to around RM5 billion per month in March and April 2026.
“If the current market price remains, the government is expected to bear total subsidies on petroleum products of RM40 billion for 2026,” it said in a written response posted yesterday on the Parliament website.
The MOF was responding to Temerloh MP Salamiah Mohd Nor's query on the latest allocation amount for petrol and diesel subsidies.
It added that this increase in subsidy amount allows Malaysian citizens aged 16 and above to enjoy RON95 petrol at a subsidised price of RM1.99 sen per litre.
The MOF said the country’s petroleum supply currently remains stable and sufficient, and that the MADANI government will continue to strengthen long-term supply security measures and targeted subsidies while the global supply crisis is ongoing.
