If you filled up over the weekend and wondered why your bill didn’t shrink along with the headlines about falling crude oil prices, the Ministry of Finance (MOF) has offered an explanation. Malaysian pump prices are calculated using the previous week’s average costs, not the live market price, so any drop in global oil prices takes time to filter through.

In an infographic posted on its X account, the ministry said the fuel currently sitting in the supply chain was bought when prices were considerably higher, and that cost is still working its way through to the pump. Logistics and insurance charges, both of which climbed over the past five weeks of rising crude, are also baked into what drivers pay today.

According to the ministry, recent supplies were procured at roughly US$150 per barrel for petrol and US$250 per barrel for diesel. Those numbers reflect the elevated costs of earlier shipments rather than where the global market sits this week.

What Drivers Are Paying From 9 To 15 April

For the week of 9 to 15 April, the subsidised RON95 price under the BUDI95 programme stays at RM1.99 per litre. That ceiling continues to shield eligible motorists from the swings happening at the wholesale level.

The unsubsidised retail price of RON95, however, has gone up by 40 sen to RM4.27 per litre. Diesel tells a similar story. In Sabah, Sarawak, and Labuan, the subsidised retail price holds at RM2.15 per litre, while the unsubsidised price in Peninsular Malaysia has risen by 70 sen to RM6.72 per litre.

How Malaysia Sets Fuel Prices Each Week

The gap between global oil news and what you pay at the pump is built into how Malaysia prices fuel each week. Prices are reviewed using the average of the previous week’s costs, so when crude drops, you won’t see the relief at your local station straight away. It works the other way too. When global oil jumps, you’re shielded from the higher price for about a week before it catches up.

If you’re filling up on subsidised RON95, these weekly changes don’t really affect you, because BUDI95 keeps your price fixed at RM1.99. This week’s hike hits you if you buy unsubsidised fuel: drivers of foreign-registered vehicles, businesses outside the targeted diesel subsidy, and anyone topping up a diesel vehicle in the Peninsula. On a 40-litre tank, this week’s 40 sen rise adds about RM16 to your RON95 bill, and the 70 sen jump on Peninsular diesel adds RM28. 

It also helps to remember that the headline price of crude is only one part of what you’re paying for at the pump. Refining margins, shipping, insurance, and the timing of when cargoes were bought all play a role, which is why a softer global market this week doesn’t automatically mean cheaper fuel by the weekend. If global prices stay lower for long enough, the savings should eventually reach unsubsidised pump prices in the coming weekly reviews.

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