Malaysia’s RON97 and diesel prices surge due to global tensions, but subsidised RON95 and targeted schemes remain to protect households and the economy.
PETALING JAYA: Fuel prices have spiked sharply on the back of escalating West Asia tensions – but Putrajaya is holding the line on subsidies to cushion the blow for Malaysians.
In the latest weekly revision under the Automatic Pricing Mechanism, RON97 jumped to RM4.55 per litre from RM3.85, while diesel in Peninsular Malaysia rose to RM4.72 from RM3.92, reflecting surging global oil prices and mounting supply uncertainty.
Despite the spike, the Finace Ministry said government has kept subsidised RON95 unchanged at RM1.99 per litre under the BUDI95 scheme, while unsubsidised RON95 remains at RM3.27. Diesel prices in Sabah, Sarawak and Labuan are also maintained at RM2.15 per litre.
The move signals a deliberate effort to shield households and businesses from the full impact of global energy volatility, even as Malaysia remains exposed to international fuel markets, said the ministry in a statement today.
Authorities said rising crude prices are being driven by prolonged geopolitical tensions in West Asia and continued supply disruptions, pushing up costs worldwide.
However, instead of passing on the increase to the people, the government is absorbing part of the surge through targeted subsidies – a move that now costs more than RM3 billion monthly.
The decision also comes as Malaysians prepare for the Hari Raya Aidilfitri festive period, with officials keen to avoid additional cost pressures during peak travel and spending.
At the same time, over 400,000 vehicles in the public transport and logistics sectors – including buses, taxis and lorries – remain protected under targeted schemes such as the Subsidised Diesel Control System and Subsidised Petrol Control System.
This is aimed at preventing a knock-on effect on transport fares and goods prices, which could ripple across the wider economy.
Enforcement will also be tightened to prevent profiteering and curb cross-border fuel smuggling, as price differences with neighbouring countries widen.
Officials stressed that subsidies must reach intended recipients, warning that leakages will not be tolerated.
With global oil markets expected to remain volatile, the government signalled it will continue taking a cautious and targeted approach to managing fuel prices while balancing fiscal pressures and cost-of-living concerns.
