Fuel Price Volatility Is Pushing More Malaysians Toward EVs

Iman Aminuddin

5th June 2026 - 3 min read

If you’re not on the BUDI95 subsidy, you’re paying RM3.72 per litre for RON95 and RM4.35 for RON97 this week, with both figures subject to change every seven days. For motorists already spending heavily on fuel, that weekly worry is influencing a bigger question: what kind of car to buy next?

The Federation of Malaysia Electric Vehicle Associations (Fomeva) and the Malaysian Electric Vehicle Owners Club (MyEVOC) both report growing interest in EVs from motorists looking for more predictable running costs.

Why Electricity Costs Behave Differently

EVs draw power from the grid rather than the pump, and electricity tariffs adjust monthly rather than weekly. Because the grid runs on a mix of coal, natural gas, and renewables, MyEVOC president Shahrol Halmi says the swings tend to be smaller than what you see at the petrol station. “EVs will help shield motorists from this volatility since they are powered from the electricity grid, which in turn has a diverse fuel mix,” he said.

The appeal is less about electricity being cheap and more about it being stable. If you commute long distances or clock high monthly mileage, that kind of predictability is comforting when you plan your monthly spending.

Shahrol added that many motorists are also thinking ahead about how long the RON95 subsidy will last. “Most feel that the subsidy is not something that can go on indefinitely. This is creating the push to learn more about EVs,” he said.

Resale Problems Cool Demand

Fomeva president Jason Lee agrees that higher fuel prices are getting people to look more seriously at EVs, especially those who spend long hours on the road. But he’s less optimistic about whether that interest will translate into purchases, largely because of how poorly EVs hold their value.

“You can get a 2023 BYD Atto 3 for less than RM80,000 today, but when those owners bought the car, they paid around RM169,000. When there is no resale value, people become reluctant to buy,” he said. Battery recycling also remains an unresolved issue that weighs on buyer confidence.

A steep drop in the resale value of a new car means a larger loss over the ownership period, which can eat into the fuel savings that made the switch appealing in the first place. For owners of older petrol cars, the government’s RM4,000 trade-in rebate for vehicles over 20 years old can help offset the upfront cost of switching, though it applies to a specific group rather than everyone.

Iman Aminuddin

Iman writes about personal finance with curiosity. She is interested in the stories behind money, the hesitation around big decisions, and the small habits that shape financial futures. Off the clock, she is either dissecting a film or climbing her way up the leaderboard in her favourite games.

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