Kuala lumpur: The retail price of diesel in Peninsular Malaysia will decrease by 30 sen to RM4.07 per litre from June 25 to 30, while unsubsidised RON97 and RON95 petrol prices will each drop by 25 sen to RM4.10 and RM3.47 per litre, respectively. The Ministry of Finance (MoF) announced these changes, noting that the reduction in retail prices for petrol and diesel aligns with last week's average international market prices, as determined by the Automatic Pricing Mechanism (APM) formula.
According to BERNAMA News Agency, for subsidised petroleum, the price of RON95 under the BUDI95 programme remains unchanged at RM1.99 per litre for over 14 million eligible recipients. The price of diesel in Sabah, Sarawak, and Labuan remains at RM2.15 per litre. Prices under the Subsidised Petrol Control System (SKPS) and the Subsidised Diesel Control System (SKDS) will also stay the same, at RM2.05 and RM2.15 per litre, respectively.
The MoF also highlighted that the MADANI government will implement BUDI MADANI Diesel (BUDI Diesel) from July 1, 2026, to standardise diesel subsidies nationwide. Through this mechanism, eligible private diesel vehicle owners will receive subsidised diesel at RM2.10 per litre using their MyKad, while subsidies for strategic sectors such as fishermen, smallholders, the commodity sector, and land public transport will be maintained.
The statement from MoF emphasized the government's commitment to balancing citizens' cost of living with prudent fiscal expenditure. The MADANI government aims to protect citizens from price fluctuations and ensure the country's fuel supply remains secure and sufficient. The price reduction reflects favourable developments in the global oil market, including moderation in crude oil prices and a more positive outlook on the West Asian conflict.
However, the MoF acknowledged ongoing mid-term uncertainties in the global petroleum market. These include risks related to peace negotiations, supply chain recoveries, and lingering issues with inventory levels and logistics costs. Under these circumstances, the MADANI government remains committed to protecting the public through targeted subsidies and strengthening long-term supply security through international cooperation with partners such as Turkmenistan and Russia.
The MoF also assured that the national fuel supply remains adequate but urged the public to practice prudent fuel consumption. Efficient travel planning and reducing unnecessary trips can help extend the national supply and alleviate pressure on subsidy expenditures.