Malaysia cuts unsubsidised fuel prices by 5 sen per litre from September 3 to 9, 2026

Malaysia will lower the retail prices of unsubsidised RON97 petrol, unsubsidised RON95 petrol, and unsubsidised diesel by 5 sen per litre starting September 3 through September 9, 2026. The new prices will be RM4.25 per litre for RON97, RM3.77 per litre for RON95, and RM4.67 per litre for diesel ^{[1, 2, 3, 4, 5]}.

The subsidised fuel prices will remain unchanged, with RON95 at RM1.99 under the Budi95 scheme, diesel at RM2.10 under Budi Diesel, petrol at RM2.05 under SKPS, and diesel at RM2.15 under SKDS ^{[1, 2, 3, 4, 5]}. The monthly quota for Budi95 and Budi Diesel fuel was restored to 300 litres starting September 1. Additionally, eligible diesel vehicle owners will receive an extra 100 litres, bringing their quota to 400 litres ^{[1, 2, 3, 5]}.

The price reduction for unsubsidised fuels reflects softer global crude oil prices for most of the Automatic Pricing Mechanism (APM) calculation period, despite recent increases linked to geopolitical tensions in West Asia ^{[1, 2, 3, 5]}. The Finance Ministry said, "Although Brent crude oil prices have moderated from the peak levels of the West Asian conflict, the global refined petroleum product market remains tight due to disruptions in petroleum flow through the Strait of Hormuz, a reduction in refining capacity and fuel export restrictions" ^[3].

This market tightness is expected to cause near-term price volatility. China began easing export restrictions on refined petroleum products implemented in March 2026, with exports rising from July onward, but regional supply has not fully returned to pre-conflict levels ^{[1, 2, 3]}.

Government subsidies cover approximately 47% of the unsubsidised RON95 price under Budi95 and 55% of the unsubsidised diesel price under Budi Diesel. This translates to subsidies of around RM1.78 per litre for RON95 and RM2.57 per litre for diesel ^{[2, 3, 5]}.

The adjustments take effect on September 3, following the restoration of monthly fuel quotas on September 1, and will last through September 9, giving Malaysian motorists a one-week period of lower unsubsidised fuel prices.