RON97, Diesel Prices Surge as Global Oil Climbs — RON95 Subsidy Holds at RM1.99, For Now

Malaysia’s fuel prices are seeing a sharp upward adjustment this week, as global crude oil prices surge past US$100 per barrel following ongoing geopolitical tensions in West Asia.

According to the Ministry of Finance, the government will maintain the subsidised RON95 price at RM1.99 per litre under the BUDI MADANI programme (BUDI95), while allowing other fuel prices to rise in line with global market conditions.

Fuel Prices (26 March – 1 April 2026)

• RON97: RM5.15 per litre (up from RM4.55)
• RON95 (unsubsidised): RM3.87 per litre (up from RM3.27)
• RON95 (BUDI95 subsidised): RM1.99 per litre (unchanged)
• Diesel (Peninsular Malaysia): RM5.52 per litre (up from RM4.72)
• Diesel (Sabah, Sarawak & Labuan): RM2.15 per litre (unchanged)

The price adjustments are made under Malaysia’s Automatic Pricing Mechanism (APM), reflecting sustained increases in global oil prices since late February 2026.

Global Pressure, Local Impact

The government cited prolonged conflict in West Asia as a key driver behind the spike in crude oil prices, which have risen more than 40% in recent weeks. This has heightened concerns over global supply disruptions, directly impacting domestic fuel pricing despite Malaysia’s status as an oil-producing nation.

Subsidy Shield Remains — At A Cost

To cushion the impact on consumers, the government is continuing targeted subsidies:

• The BUDI95 programme ensures eligible Malaysians continue to pay RM1.99 per litre for RON95
• Subsidised diesel for public transport and logistics remains at RM2.15 per litre
• Monthly subsidy burden now exceeds RM3 billion

In addition, diesel assistance under BUDI Individu and BUDI Agri-Komoditi has been increased to RM300 per month, up from RM200 previously.

Tightening Controls On Fuel Leakage

With higher price gaps between subsidised and market-rate fuels, enforcement is being stepped up:

• Continued ban on RON95 sales to foreign-registered vehicles
• Restrictions on purchasing more than 20 litres of fuel in containers without special permits
• Plans to introduce tighter diesel purchase controls in East Malaysia

These measures aim to curb subsidy leakages, particularly in border areas.

What This Means For Drivers

For Malaysian motorists, the message is clear: fuel cost pressures are back, and they’re being driven by forces well beyond local control. While RON95 users remain shielded for now, those using RON97 or operating diesel vehicles—especially in Peninsular Malaysia—will feel the pinch immediately.

CarTok Editor’s Note

This is where fuel policy stops being technical and starts becoming strategic. Holding RON95 at RM1.99 isn’t just about cost relief—it’s about buying time and cushioning the impact for many. But with global oil now back above US$100, the real question isn’t whether prices will rise further—it’s how long Malaysia can afford to keep absorbing the difference.