The government declared a proactive response to the global energy crisis on 2 April 2026 due to West Asia conflicts. High oil prices and supply risks have forced immediate nationwide cost-cutting measures.

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The government is tightening energy use in public buildings to curb wastage amidst a global supply crisis. Measures include setting air conditioning temperatures at a minimum of 24 degrees Celsius.

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In relation to the air-conditioning directive, civil servants are highly encouraged to wear batik or baju Melayu daily to adapt to warmer indoor climates. This move aims to reduce reliance on excessive cooling systems in state offices.

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A new work from home policy for civil servants starts 15 April 2026 to lower fuel and electricity consumption. It applies to those in major cities with a one way commute exceeding 8 kilometres.

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The BUDI95 fuel subsidy monthly cap was reduced from 300 litres to 200 litres starting 1 April 2026. This temporary measure addresses the rising national subsidy bill as oil prices hit USD100.

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While the policy to prohibit foreign-registered vehicles from purchasing subsidised RON95 was already planned for April 2026, the global energy crisis has significantly heightened its importance. New enforcement measures now allow for legal action against both foreign drivers and station operators to protect national reserves as oil prices exceed US$100 per barrel. To ensure subsidies remain reserved for Malaysians, authorities have intensified border checks and restricted the use of foreign payment cards at petrol pumps.

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The government had cancelled all Aidilfitri open houses for ministries and agencies as a cost-saving measure. In addition to cancelling open houses, Prime Minister Anwar Ibrahim has also directed that overseas visits for ministers be strictly limited to essential matters only as part of the cost-saving drive.

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1. Why is Malaysia affected despite producing its own oil?

Malaysia produces sweet crude for export but imports refined products and heavy crude. Nearly 40% of these requirements pass through the Strait of Hormuz, now a high-risk zone.

2. Is reducing subsidy quota better than reducing subsidy price?

Reducing quota to 200 litres protects the B40/M40 group from direct price hikes. Most Malaysians use less than this limit, keeping their monthly expenses stable despite the crisis.

3. If Malaysia can pass Hormuz, why are our prices still affected?

Even if tankers pass, global shipping costs and insurance premiums have spiked due to the conflict. This increases the landed cost of fuel, straining the national subsidy bill.

4. If petrol is rising, why not just take public transport?

The government encourages public transport via the RM50 unlimited pass. However, transport operators also face higher diesel costs, which can lead to surcharges or reduced service frequency.

5. What does air conditioning have to do with the global crisis?

Electricity in Malaysia is heavily generated using natural gas and coal. High global energy prices make generation more expensive, so setting the air conditioning to 24°C reduces the fiscal burden on the grid.

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