Malaysia

Govt cuts unsubsidised fuel prices as oil markets retreat

Cheaper fuel cost is caused by easing crude prices linked to hopes that a US-Iran diplomatic breakthrough will offset renewed concerns over the Strait of Hormuz

Updated 18 minutes ago · Published on 12 Aug 2026 5:25PM

Govt cuts unsubsidised fuel prices as oil markets retreat
MOF says pump prices for unsubsidised RON97, RON95 and diesel will be lower from Aug 13 to 19 - August 12, 2026

MOTORISTS will pay less for unsubsidised petrol and diesel from Thursday after a fall in global crude prices last week prompted the Government to lower pump prices across all three fuel categories.

The Ministry of Finance (MOF) announced on Wednesday that RON97 will fall by 20 sen a litre to RM4.15, from RM4.35, while unsubsidised RON95 will drop 15 sen to RM3.62 from RM3.77.

Unsubsidised diesel will also be reduced by 10 sen to RM4.47 a litre from RM4.57 for the Aug 13 to 19 period.

Under the targeted subsidy system, eligible consumers remain shielded from movements in international fuel prices.

For eligible BUDI MADANI RON95 (BUDI95) recipients, the Government will continue to bear a subsidy of RM1.63 a litre, equivalent to about 82% of the RM1.99 a litre paid at the pump.

For eligible BUDI MADANI Diesel (BUDI Diesel) recipients, the Government bears RM2.37 in subsidy per litre, equivalent to about 113% of the RM2.10 a litre paid at the pump.

Subsidised fuel prices will remain unchanged, with eligible Malaysians able to purchase RON95 and diesel using their MyKad, subject to their eligibility and remaining monthly entitlement.

RON95 under BUDI95 will remain at RM1.99 a litre, while diesel under BUDI Diesel will remain at RM2.10 a litre.

The ministry said regulated diesel prices under the Subsidised Diesel Control System and Subsidised Petrol Control System would also remain unchanged. - August 12, 2026

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