The Ministry of Finance has announced a sharp increase in retail prices for non-subsidised fuels effective from March 12 to 18, 2026. This adjustment follows a global energy crunch and market volatility triggered by the escalating military conflict in the Middle East.

● RON97 Petrol: Prices rose by 60 sen to RM3.85 per litre from RM3.25 previously.

● Unsubsidised RON95: The retail rate for non-BUDI95 users also jumped by 60 sen to RM3.27 per litre.

● Diesel (Peninsular): Faced the steepest hike of 80 sen, bringing the pump price to RM3.92 per litre.

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Prime Minister Anwar Ibrahim has confirmed that subsidised RON95 petrol will stay at RM1.99 per litre despite escalating tensions in the Middle East. The government aims to protect the public from the global oil surge triggered by the regional conflict.

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The government will do its utmost to maintain the RM1.99 price tag to ease the financial burden on citizens. However, officials warned that fuel subsidies are expected to increase by RM5 billion every 3 months if global crude prices remain elevated.

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Finance Minister II Amir Hamzah stated that the government can afford to hold the current RON95 price for at least 2 more months. He cautioned that a price revision might be necessary if the Iran conflict escalates further and persists long-term.

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Economists suggest that while the RM1.99 rate can hold for now, fiscal pressure on the national budget will rise significantly. Experts believe the current spike in oil prices may be short-term, provided global supply chains are not permanently disrupted by the war.

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Economy Minister Akmal Nasrullah Mohd Nasir emphasised that the government is monitoring the global energy landscape daily. Currently, there are no major changes planned for the fuel subsidy mechanism, but the ministry remains vigilant to ensure national economic stability.

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World oil prices soared following military escalations between Israel and Iran. In response, the International Energy Agency has proposed a record release of oil reserves to steady the market and prevent a global energy crisis during the ongoing regional instability.

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The government evaluates several key indicators before making any adjustments to the petrol price ceiling to ensure economic stability.

● Brent Crude Price: Tracking the benchmark price which currently fluctuates between US$88 and US$120.

● Currency Strength: Monitoring the Ringgit’s performance against the US Dollar, as oil is traded in Greenbacks.

● Inflation Rates: Assessing how any potential fuel price hike would impact the Consumer Price Index and food prices.

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