Unsubsidised Fuel Prices Drop Across the Board From Oct 1 to 7

KUALA LUMPUR, Sept 30 – Retail prices for unsubsidised petrol and diesel will decrease across Malaysia from October 1 to 7, 2026, driven by moderating average global crude oil prices, according to the Ministry of Finance (MOF).

Under the weekly Automatic Pricing Mechanism (APM) pricing framework, unsubsidised RON97 and RON95 petrol will drop by 5 sen per litre, while unsubsidised diesel will decrease by 15 sen per litre.

The new retail fuel prices for the week of Oct 1–7 are as follows:

• Unsubsidised RON97: RM5.00 per litre (down 5 sen)
• Unsubsidised RON95: RM4.52 per litre (down 5 sen)
• Unsubsidised Diesel: RM5.27 per litre (down 15 sen)

Global Supply Factors and Market Volatility

In a statement issued on Wednesday, MOF attributed the price drop to a moderation in international crude oil prices following the resumption of operations along Saudi Arabia’s East-West pipeline.

Additionally, regional supply conditions have improved, supported by an increase in China’s refined petroleum product exports. China’s exports for September are estimated to exceed four million tonnes, up from an average of three million tonnes per month last year, helping ease pricing pressure across Asian fuel markets.

However, MOF warned that global refining capacity remains uneven due to geopolitical disruptions. A major Russian oil refinery in Perm was forced to halt operations following a Ukrainian drone attack last week, curbing global diesel supplies. The ministry noted that product price volatility will likely persist as long as tensions between the United States and Iran remain unresolved.

Targeted Subsidies Remain Unchanged

The ministry reiterated that the MADANI Government will continue to shield local consumers and businesses from global price spikes through established targeted subsidy initiatives, including BUDI MADANI, BUDI Diesel, SKPS, and SKDS.

Under current targeted mechanisms:

• BUDI MADANI RON95 (BUDI95): Eligible recipients will continue to pay RM1.99 per litre. The government is bearing a subsidy of RM2.53 per litre (56 per cent of the market price).
• BUDI MADANI Diesel (BUDI Diesel): Eligible recipients will continue to pay RM2.10 per litre. The government is providing a subsidy of RM3.17 per litre (60 per cent of the market price).

–NMT