Kuala lumpur: The retail prices for RON97 petrol, unsubsidised RON95 petrol, and unsubsidised diesel are set to increase by 25 sen per litre for the period from September 10 to 16, 2026.
According to BERNAMA News Agency, the Finance Ministry (MOF) announced that the price for RON97 will rise to RM4.50 per litre from the previous RM4.25. Similarly, the price for RON95 will escalate to RM4.02 from RM3.77, while unsubsidised diesel will see an increase to RM4.92 from RM4.67. This adjustment is attributed to the significant rise in global crude oil prices during the Automatic Pricing Mechanism (APM) calculation period, driven by an escalation in conflicts between the United States and Iran and heightened risks of petroleum supply disruptions through the Strait of Hormuz.
The statement from MOF highlighted that Brent crude oil prices have been on an upward trajectory throughout the APM calculation period, peaking at US$97.31 a barrel. Increased geopolitical risk premiums have further compounded the situation amid ongoing retaliatory attacks between the United States and Iran. Additionally, the global market for refined petroleum products faces tight conditions. Disruptions to refining capacity in West Asia and ongoing attacks on Russian refineries have led to a reduction in the supply of petrol, diesel, and other petroleum products to international markets.
The ministry noted that diesel prices on the international market have surged faster than crude oil prices due to constraints on refining capacity and declining inventories. The prolonged 193-day conflict in West Asia continues to affect petroleum flows through the Strait of Hormuz, and global refining capacity has yet to stabilize. If these conditions persist, declining inventories and increasingly tight supplies of refined petroleum products could further elevate risk premiums on global petrol and diesel prices.
In response, the MADANI Government has pledged to protect its citizens and businesses from the impacts of global uncertainties by continuing to offer targeted BUDI MADANI subsidies to eligible consumers. Under the BUDI95 program, qualified recipients will pay RM1.99 per litre for RON95, with the government subsidizing RM2.03 per litre, covering 50 percent of the unsubsidised price of RM4.02. Similarly, under BUDI Diesel, recipients will pay RM2.10 per litre, with a government subsidy of RM2.82 per litre, or 57 percent of the unsubsidised price of RM4.92.
Meanwhile, the Subsidised Petrol Control System (SKPS) and the Subsidised Diesel Control System (SKDS) will maintain prices at RM2.05 and RM2.15 per litre, respectively. The basic monthly eligibility limit for BUDI95 and BUDI Diesel has been raised to 300 litres as of September 1, with eligible owners of diesel-powered pickup trucks and jeeps receiving an additional 100 litres, bringing their total monthly eligibility to 400 litres, as stated by the ministry.