Malaysia Increases Non-Subsidised Fuel Prices, RON 97 Nearly Reaches RM3.85 Per Litre

Malaysia’s Ministry of Finance has officially announced increases in non-subsidised retail fuel prices, particularly in Peninsular Malaysia. This move is a direct consequence of uncertainty in global crude oil supply chains triggered by escalating conflict between Iran, Israel, and the United States.

According to Malaysiamail, the price adjustments took effect from Thursday, 12 March 2026 through 18 March 2026. The price of RON 97 petrol increased by 60 sen to RM3.85 per litre, equivalent to approximately Rp16,565 per litre. Similar increases applied to non-subsidised RON 95, which jumped 60 sen to RM3.27 per litre, or about Rp14,076 per litre.

The largest increase occurred in diesel prices in Peninsular Malaysia, which rose 80 sen to RM3.92 per litre, equivalent to Rp16,874 per litre.

However, in the states of Sabah, Sarawak, and Labuan, diesel prices remained at the regional ceiling of RM2.15 per litre, or approximately Rp9,255 per litre.

Despite soaring fuel prices in the market, the Malaysian government emphasised that subsidised fuel prices through the BUDI95 initiative remained fixed at RM1.99 per litre, or roughly Rp8,566 per litre.

The MADANI government stated that this dual subsidy policy was specifically designed to protect vulnerable population groups from global price shocks. The Ministry of Finance also confirmed it would continue providing support through the BUDI MADANI initiative and additional cash assistance programmes whilst global oil markets remain volatile.

Currently, the Malaysian government states it continues to closely monitor the geopolitical situation in the Middle East and its potential impact on domestic inflation, with the primary priority being to maintain the subsidised fuel price cap of RM1.99 per litre for eligible citizens.