Malaysia Fuel Prices Rise by 25 Sen Per Litre Amid Escalating West Asia Conflict

KUALA LUMPUR, Sept 9 – Retail prices for RON97 petrol, unsubsidised RON95 petrol, and unsubsidised diesel in Malaysia will each increase by 25 sen per litre for the week of September 10 to 16, 2026. The Ministry of Finance (MOF) announced on Wednesday that the price adjustment stems from significant increases in global crude oil prices during the Automatic Pricing Mechanism (APM) calculation period, driven by intensifying geopolitical conflict between the United States and Iran and heightened risks to shipping channels in the Strait of Hormuz.

Under the new price structure, RON97 petrol will rise to RM4.50 per litre from RM4.25, while unsubsidised RON95 petrol will increase to RM4.02 per litre from RM3.77. Unsubsidised diesel will see its retail price go up to RM4.92 per litre from RM4.67. Explaining the upward momentum, MOF noted, “Brent crude oil prices rose throughout the APM calculation period before reaching US$97.31 a barrel on Monday. Geopolitical risk premiums on global oil supplies also increased following continued retaliatory attacks between the United States and Iran.”

The ministry further pointed out that global markets for refined petroleum products remain under severe pressure due to reduced refining capacity in West Asia and ongoing strikes against Russian refining infrastructure. Highlighting the ongoing instability, MOF stated, “After 193 days of conflict in West Asia, petroleum flows through the Strait of Hormuz and global refining capacity have yet to return to normal. If this situation persists, declining inventories and increasingly tight supplies of refined petroleum products could increase risk premiums on global petrol and diesel prices.”

Malaysia maintains BUDI MADANI despite global fuel prices

Despite the market surge, MOF reassured that the MADANI Government will maintain targeted BUDI MADANI subsidy mechanisms to buffer eligible individuals and businesses against global energy volatility. Under the BUDI95 program, eligible consumers will continue to pay RM1.99 per litre for RON95, with the government covering RM2.03 per litre in subsidies—representing 50 per cent of the market price. Similarly, BUDI Diesel recipients will pay RM2.10 per litre with a government subsidy of RM2.82 per litre, while prices under the Subsidised Petrol Control System (SKPS) and Subsidised Diesel Control System (SKDS) remain fixed at RM2.05 and RM2.15 per litre, respectively. The basic monthly allocation for BUDI95 and BUDI Diesel stands at 300 litres, with qualifying pickup truck and jeep owners receiving an extended limit of 400 litres per month.

–NMT