Fuel Prices Surge Despite Subsidy Shield, Rising Costs Becoming More Visible
KUALA LUMPUR, April 9 — While Malaysia has maintained subsidised fuel prices, sharp increases in unsubsidised rates highlight the growing cost pressures driven by global oil market volatility.
According to the Kementerian Kewangan Malaysia (MOF), the subsidised RON95 price under the BUDI95 programme remains unchanged at RM1.99 per litre.
However, the unsubsidised RON95 price has climbed by 40 sen to RM4.27 per litre, reflecting higher global fuel costs in recent weeks.
The increase is even more pronounced for diesel, with unsubsidised prices in Peninsular Malaysia jumping 70 sen to RM6.72 per litre.
Although subsidised diesel prices in Sabah, Sarawak and Labuan remain at RM2.15 per litre, the widening gap between subsidised and market prices underscores the true scale of rising fuel costs.
This suggests that government subsidies are cushioning the immediate impact, but cannot fully offset underlying global price pressures.
MOF noted that global fuel prices had surged in recent weeks, with petrol reaching around US$150 per barrel and diesel approximately US$250 per barrel.
Although prices have recently eased following geopolitical developments, the impact has yet to be reflected at the pump due to Malaysia’s pricing mechanism based on weekly averages.
As a result, earlier cost spikes continue to influence current retail prices.
At the same time, the government has reduced the BUDI95 subsidy cap to 200 litres per month — a move seen as an effort to manage rising fiscal burdens.
This adjustment signals that sustained high global prices are beginning to strain subsidy policies as well.
While additional cash aid such as RM300 under the BUDI Diesel programme remains in place, rising unsubsidised prices indicate that cost pressures may persist.
The government maintains that subsidies are necessary to protect consumers, but current trends suggest that global market forces are becoming increasingly difficult to contain.
In this context, rising fuel prices are emerging as a longer-term challenge, with implications not only for cost of living but also for national fiscal sustainability.
-wilayah.com.my
