Finance Ministry: Local diesel prices to go down following drop in global market prices
PUTRAJAYA, 15 April — The Finance Ministry has announced reductions in retail fuel prices for the week of April 16–22 2026, following a drop in global market prices and in line with the Automatic Pricing Mechanism (APM).
Retail diesel in Peninsular Malaysia will decrease by 75 sen to RM5.97 per litre, while both RON95 and RON97 petrol will drop by 25 sen, bringing their prices to RM4.02 and RM5.10 per litre respectively.
The ministry said the adjustments reflect lower international fuel prices, although it noted that ongoing conflict in West Asia continues to pose risks to global supply chains. The government, it added, will maintain close monitoring to safeguard national fuel security and shield households and key economic sectors from potential disruptions.
Fuel prices for April 16-22
• RON97: RM5.10/litre (down 25 sen from RM5.35)
• RON95: RM4.02/litre (down 25 sen from RM4.27)
• Diesel (Peninsular Malaysia): RM5.97/litre (down 75 sen from RM6.72)
Targeted subsidies remain unchanged for eligible groups:
• RON95 (BUDI95): RM1.99/litre
• Diesel in Sabah, Sarawak, Labuan: RM2.15/litre
• SKPS petrol subsidy: RM2.05/litre
• SKDS diesel subsidy: RM2.15/litre
To cushion the impact of rising global oil prices, the government has increased the BUDI Diesel cash assistance to RM400 per month for April 2026. The increase benefits 350,000 recipients under BUDI Individu and BUDI Agri-Komoditi, requiring an additional RM35 million monthly. This marks the second upward revision after the allowance was raised from RM200 to RM300 in March.
The Incentive Pembajakan kepada Pesawah (IPKP) for the 2026 planting season has also been raised from RM160 to RM300 per hectare, involving an estimated RM40 million and supporting nearly 200,000 paddy farmers facing higher input costs.
Based on current prices, the government expects to shoulder around RM7 billion per month in fuel subsidies. Subsidies for RON95 alone have surged from roughly RM300 million before the conflict to RM4 billion monthly, while diesel subsidies have risen from RM400 million to RM3 billion.
The ministry said the Madani government will continue monitoring global developments and take necessary steps to ensure stable energy supply while strengthening protection for the public.