Retail prices for RON97, non-subsidised RON95, and diesel in Peninsular Malaysia are scheduled for a significant increase effective midnight on Wednesday. Under the latest Automatic Pricing Mechanism (APM) adjustments, the price of RON97 will reach RM5.15 per litre, while non-subsidised RON95 is set at RM3.87 per litre. Meanwhile, the retail price for diesel in the Peninsula will climb to RM5.52 per litre, reflecting the ongoing pressure from international crude oil benchmarks.
The Ministry of Finance noted that the prolonged Middle East conflict has driven global crude oil prices up by more than 40 per cent, with costs now exceeding US$100 (RM396.50) per barrel. This geopolitical instability has heightened the risk of worldwide supply chain disruptions, forcing a gradual adjustment of domestic fuel prices that began in late February 2026. Despite Malaysia’s status as an oil producer, the ministry emphasised that domestic rates remain heavily influenced by the international market as a large portion of the nation’s supply is sourced globally.
In an effort to shield the public from these rising costs, the Madani Government has confirmed that subsidised RON95 (BUDI95) will remain capped at RM1.99 per litre for eligible citizens. Furthermore, diesel prices in Sabah, Sarawak, and Labuan will be maintained at the current rate of RM2.15 per litre. Public transport and land logistics sectors will also continue to benefit from the RM2.15 per litre diesel rate, with the government’s monthly subsidy expenditure expected to surpass RM3 billion to maintain these price ceilings.
To further alleviate the financial burden on individuals, the government has announced an increase in direct assistance through the BUDI program. Starting in March 2026, the monthly rate for BUDI Individu and BUDI Agri-Komoditi has been raised to RM300, up from the previous RM200. This enhancement is part of the broader Ekonomi Madani aspirations to ensure that national wealth is redistributed effectively to protect vulnerable groups from the impact of escalating fuel expenses and general inflation.
In addition to financial aid, the authorities are intensifying enforcement measures to curb the leakage of subsidised fuel, particularly at border areas and in East Malaysia. New controls are being introduced to monitor diesel purchases in Sabah, Sarawak, and Labuan to prevent misuse. Existing regulations, such as the ban on selling RON95 to foreign-registered vehicles and the prohibition of purchasing more than 20 litres of fuel in containers without a special permit, remain strictly in force to ensure supply stability for local consumers.
