Fuel Prices Jump in Malaysia — RON97 Up 60 Sen, Diesel Up 80 Sen as Global Oil Prices Surge

Malaysia’s weekly fuel price adjustment has delivered one of the sharpest increases in recent years, with petrol and diesel prices rising significantly for the 12–18 March 2026 pricing period following a sudden spike in global oil markets.

According to the Ministry of Finance, RON97 petrol rises by 60 sen to RM3.85 per litre, while diesel in Peninsular Malaysia increases by 80 sen to RM3.92 per litre.

The unsubsidised market price of RON95 is now RM3.27 per litre, reflecting the jump in global crude oil prices. 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 12–18 March 2026

Global Oil Shock Driving the Increase

The sudden rise in Malaysia’s pump prices mirrors turbulence in global energy markets over the past week.

Brent crude briefly surged to around US$119 per barrel earlier in the week before easing to roughly US$100 today, following geopolitical tensions in the Middle East that raised concerns about supply disruptions.

Much of the market anxiety centres 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 ripple effects are already spreading across other fuel-dependent industries.

Airlines across Asia and Europe have begun raising ticket prices or introducing fuel surcharges as jet fuel costs climb sharply. Aviation fuel prices that previously hovered around US$85–US$90 per barrel have surged dramatically, in some cases reaching US$150–US$200 per barrel, forcing carriers to review fares and operating costs.

Industry analysts note that fuel typically accounts for 20% to 30% of airline operating costs, meaning sudden oil price spikes can quickly translate into higher ticket prices for travellers. In news reports, Malaysia Airlines has included a fuel surcharge for domestic flights of RM36 for business class seats and RM18 for economy class seats. The national carrier will also implement surcharges in phases for international destinations.

Subsidised RON95 Remains Unchanged

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 RM3.20 per litre.

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

For now, most Malaysians remain insulated from the global oil shock thanks to the RM1.99 BUDI95 subsidy, which allows up to 300 litres of petrol per month at the subsidised price.

But when crude prices surge, the real pressure builds quietly behind the scenes in the national subsidy bill. If volatility persists, the bigger question may not be the RM1.99 price itself — but how generous the subsidised quota can remain over time.

And that’s exactly where fuel-efficient technologies start to look more compelling. When the global oil market becomes unpredictable, hybrids, range extenders, and EVs suddenly make less sense as a trend — and more sense as a hedge against the next fuel shock.