Kuala lumpur: The Ministry of Finance (MOF) is evaluating the introduction of a more focused diesel subsidy mechanism for Sabah and Sarawak, akin to the existing BUDI95 program, as revealed by MADANI government spokesperson Datuk Fahmi Fadzil. The initiative is currently under review, and no final decisions have been made yet.

According to BERNAMA News Agency, the proposal has not been deliberated in the Cabinet meeting thus far. However, on March 28, 2026, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali stated that discussions with the Sabah and Sarawak state governments are planned before the targeted diesel subsidy mechanism is launched.

Fahmi also addressed the ongoing global supply crisis, emphasizing that the government is vigilantly observing fluctuations in global crude oil prices. This monitoring will inform future decisions regarding the nation's fuel subsidy policies, including BUDI95 and BUDI Diesel. The National Economic Action Council (NEAC) has confirmed that the crude oil supply for Petroliam Nasional Bhd (Petronas) is adequate for May and June.

Furthermore, Fahmi highlighted that the NEAC is closely watching price trends for crude oil and petroleum products such as RON95 and diesel, especially given the continued closure of the Strait of Hormuz. He noted that government measures related to BUDI95, BUDI Diesel, and BUDI individuals are under review, with a current focus on supply stabilization and the impact of global oil prices.

In related news, Economy Minister Akmal Nasrullah Mohd Nasir indicated that restoration of crude oil supply could take between three and 12 months in the event of extended disruptions. Additionally, repairs to damaged oil and gas infrastructure might require even more time. The average global market price of Brent crude oil (spot) saw a 6.7 percent decrease to US$109.94 per barrel from April 20-24, 2026, compared to the prior week's US$117.84 per barrel. Despite this, a week-on-week comparison revealed a 6.5 percent increase in prices.