THE government has moved to reassure consumers that extensive fuel subsidies will remain intact despite another sharp rise in petrol and diesel prices, as geopolitical turmoil in West Asia continues to destabilise international energy markets and place growing strain on national finances.
Announcing the latest weekly fuel adjustments, the Ministry of Finance said prolonged conflict in the region had driven Brent crude prices to about US$110 per barrel, almost 60 per cent higher than levels recorded before the crisis erupted more than 11 weeks ago.
The ministry warned that the worsening security situation was disrupting global petroleum supply chains, particularly around the Strait of Hormuz, a strategic maritime route responsible for transporting around one-fifth of the world’s petroleum supply.
It said rising shipping risks had also caused insurance premiums and logistics costs to surge sharply, further inflating global fuel prices.
“In the current climate of continued uncertainty in global markets, the MADANI Government calls on the people to continue practising prudent fuel consumption to help extend the nation’s supply,” the ministry said.
The government also encouraged Malaysians to plan their daily journeys more efficiently to reduce fuel consumption amid ongoing market volatility.
Under the Automatic Pricing Mechanism (APM), retail fuel prices for the period from 21 May to 27 May 2026 will increase across all major categories.
RON97 petrol will rise by 15 sen to RM4.85 per litre, while RON95 will climb by 20 sen to RM4.07 per litre. Diesel prices in Peninsular Malaysia will increase by 10 sen to RM4.97 per litre.
Despite the increases, Putrajaya stressed that targeted subsidies would continue for millions of consumers and strategic sectors to soften the impact of soaring global oil prices.
Subsidised RON95 fuel under the BUDI MADANI RON95 programme will remain fixed at RM1.99 per litre for eligible recipients.
Diesel prices in Sabah, Sarawak and Labuan will stay at RM2.15 per litre, while rates under the Subsidised Petrol Control System (SKPS) and Subsidised Diesel Control System (SKDS) will remain at RM2.15 and RM2.05 per litre respectively.
The ministry said more than 14 million Malaysians currently benefit from subsidised RON95 prices under the BUDI95 initiative, accounting for more than 90 per cent of total RON95 usage nationwide.
“At the current unsubsidised RON95 price of RM4.07 per litre, the use of 200 litres would cost RM814. This means the MADANI Government bears RM416, or more than half of the actual cost of RON95, for every recipient using the full BUDI95 entitlement,” the ministry said.
Eligible recipients are entitled to up to 200 litres monthly, meaning users under the scheme would pay a maximum of RM398 a month even as market fuel prices continue to climb.
The government said it would continue balancing fiscal discipline with measures aimed at protecting households from rising living costs, while ensuring the country’s fuel supply remains stable amid prolonged uncertainty in global energy markets. - May 20, 2026
