4th March 2026 - 3 min read
Petrol prices are one of the few costs that can quickly shift a monthly budget. For now, the government says the subsidised RON95 price will remain at RM1.99 per litre despite rising global uncertainty following the latest conflict in the Middle East.
Economy Minister Akmal Nasrullah Nasir said the government currently has no plans to introduce major policy changes or adjust the domestic RON95 price.
Speaking at a media conference after attending the OGSE100 CEOs Forum 2026, Akmal said the government is closely monitoring developments in the Middle East but has not seen conditions that require policy changes.
Tensions in the region have raised concerns about potential disruptions to global oil supply, particularly around shipping routes such as the Strait of Hormuz, which handles a significant portion of global crude exports.
Sharp disruptions to these routes can push global oil prices higher, which would normally translate into higher fuel costs in many countries. However, Malaysia’s fuel subsidy mechanism allows the government to keep domestic petrol prices stable even when global prices fluctuate.
For now, the government intends to maintain the existing subsidy structure and keep the RON95 price at RM1.99 per litre.
The RON95 subsidy is currently managed under the Budi95 targeted subsidy programme, which aims to keep petrol affordable for Malaysians while allowing the government to gradually reduce broader subsidy spending.
Prime Minister Anwar Ibrahim, who also serves as Finance Minister, said on 1 March that the government would continue efforts to maintain the subsidised price despite volatility in global oil markets.
Oil prices have risen following tensions in the Middle East, but the government has indicated that domestic fuel pricing will remain unchanged for now.
Akmal also said the government is maintaining its 2026 gross domestic product growth forecast of 4.0% to 4.5%, even as geopolitical tensions continue to affect global markets.
He noted that any revision to the official forecast would typically be assessed by Bank Negara Malaysia, but at present the government is proceeding with its existing outlook.
RON95 petrol prices remain unchanged for now, which keeps transportation costs predictable for motorists and businesses that rely on daily fuel spending.
Malaysia’s fuel subsidy system allows the government to maintain a fixed retail price even when global oil prices fluctuate. When global crude prices rise, the government absorbs the difference through subsidy spending.
Officials say they will continue monitoring developments in global oil markets, but there are currently no plans to adjust the RON95 price or subsidy framework.
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Samuel writes about personal finance and financial news, focusing on how banking updates, policies, and promotions affect everyday money decisions. He enjoys making complicated financial topics easier to follow. Outside of writing, he spends his time watching TV shows and occasionally convincing himself he will only watch one episode.
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