MALAYSIA’S fuel subsidy burden has jumped dramatically—rising more than four times in less than a week—following a surge in global oil prices linked to the US-Israel conflict involving Iran.
Prime Minister Anwar Ibrahim said on Sunday that monthly subsidies for RON95 petrol and diesel have climbed from about RM700 mil to RM3.2 bil.
“Following the rise in global oil prices due to the conflict in West Asia, triggered by attacks by the Israeli regime and the United States on Iran, many have asked why fuel prices in Malaysia are also affected despite us being an oil-producing nation,” he said.
According to him, Malaysia is impacted as nearly 50 per cent of the nation’s oil supply passes through the Strait of Hormuz.
Anwar said that although Malaysia is an oil producer, the country actually imports more oil than it exports.
“To protect the public, government subsidies have increased from around RM700 mil to RM3.2 bil in less than a week,” he added.
The public and most businesses do not have to pay actual market prices, as these subsidies are channelled through BUDI MADANI RON95 (BUDI95) and BUDI Diesel.
In Malaysia, unsubsidised fuel prices have continued their upward trend for a second consecutive week.
RON95 is now priced at RM3.27 per litre, while RON97 has risen to RM4.55 per litre—up from RM2.59 and RM3.15 per litre respectively at the end of February.
Diesel prices in Peninsular Malaysia have also increased significantly, climbing from RM3.04 to RM4.72 per litre during the same period.
Meanwhile, diesel prices in Sabah, Sarawak and Labuan remain unchanged at RM2.15 per litre.
Across the region, Singapore records the highest fuel prices, with 95-octane petrol at RM10.70 (SG$3.47) per litre.
Filling a 36-litre tank for a Perodua Bezza would cost around RM385. —Mar 23, 2026
Main image: Anwar Ibrahim (Facebook)
