Malaysia Cuts Unsubsidised Fuel Prices by Five Sen

KUALA LUMPUR, AUGUST 2026 — The retail prices of unsubsidised RON97 petrol, RON95 petrol and diesel in Malaysia have been reduced by five sen per litre for the period from August 6 to 12, 2026.

The Ministry of Finance said the revised prices took effect on Thursday, August 6, following the latest calculation under the Automatic Pricing Mechanism.

Under the new weekly pricing structure, RON97 is priced at RM4.35 per litre, while unsubsidised RON95 has been reduced to RM3.77 per litre.

The retail price of unsubsidised diesel has also fallen to RM4.57 per litre.

According to the ministry, Brent crude oil traded above US$90 per barrel during the previous week.

However, a decline towards the end of the Automatic Pricing Mechanism’s calculation period allowed the government to lower the retail prices of unsubsidised petroleum products.

Meanwhile, subsidised fuel prices remain unchanged.

BUDI MADANI RON95, also known as BUDI95, continues to be sold at RM1.99 per litre, while BUDI MADANI Diesel remains at RM2.10 per litre.

Petrol supplied under the Subsidised Petrol Control System remains priced at RM2.05 per litre, while diesel under the Subsidised Diesel Control System stays at RM2.15 per litre.

The Ministry of Finance said global petroleum markets remain volatile because of continuing geopolitical uncertainty and rapidly changing developments involving international peace efforts.

Fuel prices remain particularly sensitive to potential supply disruptions affecting major maritime routes, including the Strait of Hormuz and the Red Sea.

Both waterways are important to international energy transportation and commercial shipping.

Any escalation that restricts vessel movements could disrupt global oil supplies, increase transport costs and place renewed upward pressure on petroleum prices.

The ministry warned that petroleum prices are expected to remain exposed to uncertainty until the conflicts affecting global markets reach a lasting resolution.

Despite the challenging external environment, the government said it remains committed to protecting households and businesses from the effects of global fuel-price volatility.

Targeted subsidies provided through BUDI95, BUDI Diesel, SKPS and SKDS will therefore continue to support eligible consumers and economic sectors.

The government also encouraged Malaysians to use fuel responsibly by planning journeys more efficiently and reducing unnecessary travel.

Such measures could help limit pressure on the country’s fuel supply and reduce the government’s overall subsidy expenditure.

The Ministry of Finance said it would continue adopting a cautious approach to fuel-price management while ensuring that Malaysia maintains a sufficient and secure supply of petroleum products.

The latest reduction offers temporary relief to motorists using unsubsidised fuel, although future weekly prices will continue to depend on international crude oil movements, currency conditions and geopolitical developments.