Malaysia Raises Unsubsidised Petrol and Diesel Prices as West Asia Tensions Drive Oil Surge

KUALA LUMPUR, JULY 2026 – Malaysia will increase the retail prices of unsubsidised petrol and diesel for the period from July 23 to July 29, 2026, following a sharp rise in global oil prices linked to worsening geopolitical tensions in West Asia.

The Ministry of Finance said the unsubsidised price of RON97 petrol would rise by 20 sen to RM4.20 per litre, while unsubsidised RON95 would increase by the same amount to RM3.62 per litre. The unsubsidised retail price of diesel will rise by 35 sen to RM4.42 per litre.

The revised rates were determined through the Automatic Pricing Mechanism, which considers movements in global petroleum product prices and foreign exchange rates when calculating Malaysia’s weekly fuel prices.

According to the ministry, Brent crude oil prices climbed by approximately 16% during the preceding week after conflict between the United States and Iran escalated following the end of a ceasefire period. The latest developments intensified concerns about the stability of energy supplies from the region.

Restrictions on shipping and a reduction in vessel traffic through the Strait of Hormuz have added to fears of disruptions to global petroleum supplies. The strategic waterway is an important route for international oil shipments, making any interruption a major concern for energy markets.

The increase in crude oil prices was also attributed to declining global inventory levels and the possibility of disruptions affecting oil shipments from Saudi Arabia. These pressures have contributed to greater uncertainty across the international petroleum market.

Although efforts to revive negotiations and introduce new ceasefire proposals have helped limit part of the price surge, the ministry said they had not removed market concerns over possible supply interruptions.

Global petroleum prices are expected to remain volatile until there is a clearer resolution to the conflict. Continued military tensions, restrictions on maritime movement and uncertainty surrounding major oil-producing countries could keep international energy prices elevated.

The ministry assured the public that Malaysia’s fuel supply remained sufficient at present. However, consumers were encouraged to practise prudent fuel consumption amid uncertainty in the international market.

Malaysians were advised to plan journeys more efficiently and reduce unnecessary travel where possible. Such measures could help preserve national supplies while easing pressure on government subsidy expenditure.

The government said it would continue adopting a cautious approach to protect consumers from severe price fluctuations while ensuring that Malaysia’s fuel supply remains adequate and secure.