Peninsular Malaysia Diesel Price Drops by 30 Sen to RM4.37 Per Litre
PETALING JAYA: Retail diesel prices in Peninsular Malaysia will fall by 30 sen to RM4.37 per litre for the period of June 18 to 24, 2026, following softer global fuel prices and improving geopolitical conditions in the Middle East.
The Ministry of Finance (MOF) said the reduction from RM4.67 per litre was determined under the Automatic Pricing Mechanism (APM), which takes into account the average movement of international petroleum product prices over the preceding week.
According to the ministry, the latest adjustment is expected to provide some relief to consumers and businesses that rely heavily on diesel.
“The retail price is determined according to the APM formula based on the average international market price of petroleum products.
“In addition, encouraging developments in the Middle East conflict and signs of a more lasting resolution have helped moderate global crude oil prices from previous highs,” MOF said in a statement today.
However, the ministry cautioned that several short-term risks remain and could prevent oil prices from returning to pre-conflict levels.
Among the concerns are uncertainties surrounding the reopening of trade routes through the Strait of Hormuz and supply disruptions that may take months to fully recover.
MOF added that the possibility of peace negotiations failing to reach a definitive settlement could also influence future movements in global energy prices.
Meanwhile, the retail price of RON97 petrol remains unchanged at RM4.35 per litre.
RON95 without subsidies will also stay at RM3.72 per litre.
For beneficiaries of the Budi Madani RON95 (BUDI95) programme, subsidised RON95 will continue to be sold at RM1.99 per litre, benefiting more than 14 million eligible Malaysians.
The ministry further announced that subsidised diesel prices in Sabah, Sarawak and Labuan will remain at RM2.15 per litre.
Fuel prices under the Subsidised Petrol Control System (SKPS) will also stay at RM2.05 per litre, while diesel under the Subsidised Diesel Control System (SKDS) remains fixed at RM2.15 per litre.
Despite the decline in market prices, MOF said the government continues to bear a significant subsidy burden to shield consumers from higher fuel costs.
“The government’s subsidy commitment based on current market prices is still projected to reach around RM3.5 billion per month.
“Of this amount, approximately RM2 billion is allocated for RON95 subsidies, while diesel subsidies account for about RM1.5 billion monthly,” it said.
The ministry noted that at the unsubsidised rate of RM3.72 per litre, a monthly consumption of 200 litres of RON95 would cost RM744.
However, eligible BUDI95 recipients only pay RM398, with the remaining RM346 borne by the government.
MOF urged Malaysians to continue using fuel prudently and plan their journeys efficiently to help reduce pressure on national subsidy spending while ensuring long-term energy sustainability.
