The Malaysian government has decided to maintain the subsidised price of RON95 petrol at RM1.99 per litre under the BUDI95 initiative, while increasing the Budi Diesel cash assistance to RM300 per month, up from RM200, for an interim period.
In a statement issued on Thursday, the Ministry of Finance (MoF) said the move was made despite rising pump prices for petrol and diesel following the recent surge in global oil prices.
The ministry explained that the decision reflects the government’s commitment to easing the cost-of-living pressure faced by Malaysians. Under the Budi Madani targeted subsidy initiative, additional financial assistance will continue to be provided to help households manage the impact of fuel price volatility.
“The Madani Government will continue to protect Malaysians through the targeted subsidy programme Budi Madani and additional cash assistance as the global oil market remains uncertain,” the statement said.
Global Oil Market Volatility
According to the ministry, the recent spike in fuel prices was triggered by a sharp rise in global crude oil prices, largely driven by escalating tensions in West Asia following attacks on the Islamic Republic of Iran.
On March 9, the price of Brent crude oil surged to US$119 per barrel before easing to around US$90 per barrel. However, the global oil market remains volatile amid ongoing geopolitical uncertainty.
The government said it will continue to monitor developments closely and adjust policy responses when necessary to ensure that the welfare of Malaysians remains protected.
