Malaysia Government to maintain subsidised petrol prices as global oil disruption persists: MOF

Effective 1 April 2026, the BUDI95 eligibility limit has been temporarily capped at 200 litres per month until global supply conditions stabilise, while new diesel filling limits have been implemented in Sabah, Sarawak, and Labuan to curb leakage and smuggling.

Malaysia says it is keeping retail fuel prices below market levels for another week despite a sharp escalation in global oil prices. 

According to the Ministry of Finance, the ongoing global energy crisis has pushed global Brent crude oil prices up by more than 40%, topping US$100 per barrel. More critically, refined product prices for petrol and diesel have also climbed up to US$150 per barrel and US$250 per barrel respectively, putting pressure on retail prices for both products.

These price hikes have added significant pressure on domestic petrol prices, which are calculated under the Automatic Pricing Mechanism (APM).

For the period of 2–8 April 2026, retail fuel prices before subsidies will be as follows:

Retail prices without subsidy (2–8 April 2026)

• RON97: RM4.95 per litre (1 April 2026: RM5.15 per litre)
• RON95: RM3.87 per litre (1 April 2026: RM3.87 per litre)
• Diesel (Peninsular Malaysia): RM6.02 per litre (1 April 2026: RM5.52 per litre)

However, the government continues to maintain subsidised, targeted prices for the public and specific sectors:

Subsidised fuel prices

• RON95 (BUDI95): RM1.99 per litre
• Diesel (Sabah, Sarawak, W.P. Labuan): RM2.15 per litre
• Subsidised Petrol Control System (SKPS): RM2.05 per litre
• Subsidised Diesel Control System (SKDS): RM2.15 per litre

In addition, effective 1 April 2026, the BUDI95 eligibility limit has been adjusted to 200 litres per month. The Government describes this as a temporary measure until global supply conditions stabilise. Officials stress that around 90% of Malaysians, whose average petrol consumption is about 100 litres a month, are unlikely to be affected by this cap.

To curb leakage and smuggling, the Government has also implemented diesel filling limits in Sabah, Sarawak and W.P. Labuan as follows:

Diesel filling limits: 

• Diesel for light vehicles (private, public and goods) will be capped at 50 litres per purchase.
• Diesel for public and goods land transport vehicles will be capped at 100 litres per purchase.
• Diesel for heavy vehicles (over three tonnes) will be capped at 150 litres per purchase.

As an interim measure following the increase in diesel prices, the Government is maintaining the additional BUDI Diesel cash assistance of RM100 in April, bringing total assistance to RM300 for BUDI Individual and BUDI Agri-Commodity recipients.

Beyond these interim measures, the Government is also considering medium and long-term measures to ensure that the subsidy mechanism remains sustainable, transparent and benefits the people, taking into account the current developments in the global energy crisis and the implications for the global energy market.

These latest steps build on earlier measures announced last week, when Prime Minister Anwar Ibrahim first moved to cushion Malaysians from the impact of surging global oil prices and the Middle East conflict.

Lead image / PM Anwar Facebook