Retail prices for RON97 petrol in Peninsular Malaysia will rise by 15 sen to RM4.85 per litre for the week of May 21 to 27, 2026, authorities confirmed [1, 2, 3]. The price for unsubsidised RON95 petrol will increase by 20 sen to RM4.07 per litre during the same period [1, 2, 3]. Diesel prices will also cost 10 sen more, reaching RM4.97 per litre in Peninsular Malaysia [1, 2, 3].

These adjustments follow Malaysia’s Automatic Pricing Mechanism formula, which reflects average international prices from the previous week [2, 3, 4]. The government maintains targeted fuel subsidies, with RON95 petrol subsidised at RM1.99 per litre under the BUDI95 programme and diesel subsidised at RM2.15 per litre in Sabah, Sarawak, and Labuan [5, 2, 3]. The subsidised Petrol Control System price remains at RM2.05 while the subsidised diesel control price stays at RM2.15 per litre [5, 2].

More than 14 million Malaysians benefit from targeted RON95 subsidies through BUDI95, covering over 90% of RON95 usage in the country [5, 6]. At the new unsubsidised RON95 price, 200 litres will cost RM814, with the government subsidising about RM416 for eligible users, more than half the total cost [5, 4, 6].

The price hike comes as global Brent crude oil prices hover near USD 110 per barrel, about 60% higher than the pre-conflict level near USD 70 per barrel. This increase is driven by an ongoing West Asian geopolitical conflict lasting over 11 weeks, disrupting supply chains and increasing shipping and insurance costs due to the strategic Strait of Hormuz trade route [5, 3, 4].

The Malaysian Ministry of Finance urged citizens to "continue practising prudent fuel consumption to help conserve the nation's supply," highlighting efforts to balance fuel supply stability with fiscal management amid volatile global markets [7]. The Finance Ministry also stated, "the Madani Government is bearing RM416, or more than half of the actual RON95 cost, for each recipient using the full BUDI95 entitlement" [4].

Meanwhile, neighboring China announced an increase in gasoline and diesel prices starting May 22, with rises of 75 and 70 yuan per ton respectively, part of its tenth adjustment this year [8, 9].

The pricing changes in Malaysia took effect today, May 21, and will remain until May 27, 2026 [1, 2, 3].