Fuel Prices Rise Again In Malaysia: September 24–30, 2026 Global Pressures and Local Protection

For the second week running, Malaysians face higher market fuel prices as global oil volatility continues to push costs upward. Effective September 24–30, 2026, the Ministry of Finance has announced further increases across diesel and petrol grades, a direct reflection of sustained international market pressures. At the same time, the government’s targeted subsidy framework remains firmly in place, protecting eligible consumers from the full brunt of these rises through the Budi Madani assistance programme.

Weekly Price Update: Another Round of Increases

The trend from the previous week has accelerated:

• B10/B15 diesel: RM5.42 per litre — up 15 sen from RM5.27

• Euro 5 B7 diesel: RM5.62 per litre — 20 sen above the B10/B15 rate

• RON 95 (unsubsidised): RM4.57 per litre — up 20 sen from RM4.37

• RON 97: RM5.05 per litre up 20 sen from RM4.85

These hikes follow substantial increases the prior week, September 17–23, when all fuels rose by 35 sen. Over just two weeks, unsubsidised diesel has climbed 50 sen, and RON 95 has gained 55 sen a combined jump of roughly 10–13% depending on grade. The weekly pricing mechanism, introduced in January 2019, is now in its 403rd edition, with this marking the 40th update of 2026 alone.

Budi Madani: The Safety Net Remains

Crucially, the headline increases do not apply to all motorists. Under the Budi Madani framework:

• Subsidised RON 95 (Budi95): remains fixed at RM1.99 per litre, unchanged despite market movement

• Subsidised diesel: remains at RM2.10 per litre effective since July 1, 2026

• Monthly quotas restored September 1: 300 litres per vehicle for eligible users shared across both Budi95 and subsidised diesel

• Pick-up truck and jeep owners: qualify for an additional 100 litres, bringing their total to 400 litres per month

This structure means that for essential personal and business use, millions of Malaysians remain insulated from the global price surge. Only consumption beyond the quota or purchases by non-eligible users will be charged at the higher market rates.

What Is Driving the Gains?

The upward trajectory is rooted in international developments. Brent crude has risen from approximately USD70 per barrel early in 2026 to above USD105 a roughly 50% jump linked to ongoing tensions in the Middle East, supply constraints, and strong global demand. Malaysia’s weekly pricing formula reflects these movements with a slight lag, meaning recent pressures are now fully feeding through to pump prices.

The two-week pattern first a sharp 35 sen rise, then a second increase — suggests that the market has not yet found stability. Analysts note that until crude prices ease or supply chains normalise, further upward pressure remains possible.

Balancing Affordability and Fiscal Reality

The dual pricing system underscores a difficult balancing act for policymakers. On one hand, automatic pass-through to market prices prevents runaway subsidy costs that can strain national finances. On the other hand, targeted support ensures that low- and middle-income households, as well as small businesses dependent on transport, are not disproportionately burdened.

The restoration of the quota from 200 litres back to 300 litres on September 1 after a temporary reduction reflects government awareness that cost-of-living pressures remain acute. The extra 100 litres for pick-up and jeep owners recognises that many in these categories rely on larger vehicles for work and livelihood.

Prices are set to hold at these levels until midnight September 30. Whether the next update brings relief or further increases will depend largely on movements in global crude markets. For now, the message is clear: the gap between protected and market prices has widened, making efficient use of fuel and careful budgeting all the more important for households and businesses alike.

The Budi Madani scheme remains the primary buffer, but as global energy costs show little sign of returning to earlier lows, the challenge of keeping domestic fuel affordable while maintaining fiscal responsibility will stay at the centre of national economic policy.