Fuel Prices Jump Again in Malaysia: RON97 Up 70 Sen, Diesel Up 80 Sen as Global Oil Crisis Deepens

Malaysia’s weekly fuel price adjustment has delivered another sharp increase for the 19–25 March 2026 pricing period, marking the second consecutive week of significant hikes as global oil markets remain volatile amid escalating Middle East tensions.

According to the Ministry of Finance, RON97 petrol rises by 70 sen to RM4.55 per litre, while diesel in Peninsular Malaysia increases by 80 sen to RM4.72 per litre.

This follows last week’s increase of 60 sen for RON97 and 80 sen for diesel, bringing the cumulative price hike to RM1.30 per litre for RON97 and RM1.60 for diesel in less than two weeks.

The unsubsidised market price of RON95 is now RM3.27 per litre (unchanged from last week’s adjustment). However, Malaysians eligible under the government’s targeted subsidy programme will continue paying RM1.99 per litre through the BUDI95 initiative, shielding most motorists from the full impact of the price surge.

Fuel Prices for 19–25 March 2026

The government has also maintained targeted assistance for sectors affected by higher diesel prices, including public transportation and land goods transportation operators through the BUDI Diesel programme.

Global Oil Shock Intensifies

The continued rise in Malaysia’s pump prices reflects sustained turbulence in global energy markets.

Brent crude has surged beyond US$100 per barrel from the US$70 level prior to the flashpoint in the Middle East. It is currently hovering around US$110 per barrel.

Much of the market anxiety continues to centre around the Strait of Hormuz, a critical shipping route through which roughly one-fifth of the world’s oil supply passes. Any disruption to this corridor can quickly tighten global supply and push prices higher.

The Ministry of Finance noted that global price changes have not been fully reflected in retail prices, as the government has chosen not to fully pass on these price increases to the public.

Subsidy Burden Exceeds RM3 Billion Monthly

Despite the surge in global prices, the Malaysian government has maintained the RM1.99 per litre price for subsidised RON95 under the BUDI95 targeted subsidy framework.

This policy effectively cushions the majority of Malaysian motorists from global oil volatility, even as the underlying market price of petrol climbs above RM4.50 per litre for RON97.

According to the Ministry of Finance, the measure of maintaining the BUDI95 price at RM1.99 per litre for Malaysians and the diesel price at RM2.15 per litre for public transportation and the land goods transportation sector, the subsidy burden borne by the government exceeds RM3 billion per month.

However, the widening gap between subsidised and market fuel prices also highlights the growing fiscal burden of fuel subsidies if global energy markets remain volatile.

CarTok Editor’s Note

The RM1.99 BUDI95 subsidy (300 litres/month) remains a crucial lifeline for Malaysians, but with the government’s fuel subsidy bill now exceeding RM3 billion monthly and global oil prices showing no signs of stabilising, sustainability questions loom large.

Regional neighbours are already acting — Thailand and Vietnam, for example, have implemented work-from-home policies to reduce petrol and energy consumption. For Malaysian urban commuters, public transportation offers a practical alternative. Klang Valley residents can already access RapidKL’s unlimited monthly transit pass at just RM50 — a fraction of what most motorists spend on fuel alone, even at subsidised prices. However, the public transport system requires expanded coverage, better last-mile connectivity, and possibly subsidised fares to make it genuinely attractive.

For the government, pressure may mount to review the 300-litre quota, accelerate electrified vehicle adoption policies, or tap into strategic petroleum reserves if the crisis prolongs. For motorists, this is a wake-up call to adopt fuel-efficient habits and consider vehicle choices that hedge against future oil shocks.

The cushion is real — but not infinite. Appreciate it while it lasts, and prepare for whatever comes next.