Malaysia to keep subsidized petrol prices at MYR1.99/liter

Malaysia has announced its intention to maintain the subsidized price of RON95 petrol at RM1.99 per litre under the Budi Madani RON95 (Budi95) scheme, with Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim stating the government can sustain this rate for up to two months amid ongoing geopolitical tensions in the Middle East according to government statements. The targeted subsidy, effective since September 30, 2025, is available exclusively to Malaysian citizens holding valid driving licences, with a monthly cap of 300 litres. Non-citizens and large corporations now pay the unsubsidized rate of approximately RM2.60–RM2.67 per litre, following recent adjustments to other fuel grades, including RON97 and diesel as reported by the Ministry of Finance.

Anwar emphasized that the subsidy aligns with national celebrations for Malaysia Day and National Day, framing it as an appreciation initiative rather than a universal welfare measure. The program leverages automated verification via MyKad cards and digital payment options like Touch 'n Go to streamline distribution. While critics question the fiscal sustainability of subsidies, Anwar highlighted Malaysia's competitive pricing relative to regional peers, noting that RON95 costs RM2.61 per litre in Saudi Arabia and significantly more in Indonesia, Thailand, and Singapore according to official data.

The government remains cautious about regional instability, particularly the 200 vessels delayed in the Strait of Hormuz—a critical oil transit route—and has urged stakeholders to monitor potential economic impacts as reported by Paultan. Unsubsidized fuel prices rose marginally in March 2026, reflecting global market fluctuations. The Budi95 program underscores Malaysia's strategy to balance consumer affordability with fiscal prudence amid volatile global energy dynamics.