Malaysia reduced retail prices for unsubsidised RON97, RON95, and diesel by 10 sen per litre for the week of July 1 to July 8, 2026. The new prices are RM4.00 for RON97, RM3.37 for RON95, and RM3.97 for diesel per litre [1, 2, 3, 4].
The price adjustment followed the Automatic Pricing Mechanism formula, reflecting a drop in average international crude oil prices and improved global supply amid easing Middle East tensions. However, the Ministry of Finance warned that global oil markets remain volatile with risks to crude prices, shipping costs, and fuel supply until the geopolitical conflicts fully resolve [1, 2, 3, 4].
On July 1, the government officially rolled out the Budi Madani Diesel (Budi Diesel) subsidy programme nationwide. This allows about 700,000 eligible private diesel vehicle owners across the country to purchase subsidised diesel at RM2.10 per litre using MyKad verification. The beneficiaries include 400,000 in Peninsular Malaysia and 300,000 in Sabah, Sarawak, and Labuan [1, 5, 2, 6, 3, 4].
In addition, around 70,000 commercial and goods transport vehicles in Sabah, Sarawak, and Labuan can buy subsidised diesel at RM2.15 per litre under the Subsidised Diesel Control System (SKDS) [5, 6, 3, 4].
The Budi Diesel scheme expands on an earlier targeted subsidy program for 180,000 recipients in Peninsular Malaysia. Eligible owners of diesel-powered pickup trucks and SUVs can apply for a monthly additional 100-litre quota through the Budi Madani portal [5, 6].
To ease access to the subsidy, the Road Transport Department waived ownership transfer fees for diesel vehicles for three months starting July 2, enabling easier transfer among family members. Weekend counter services were arranged at state offices from July 4 to July 26 [6].
Early access to the Budi Diesel scheme began on June 27 for eligible private diesel vehicle owners in Peninsular Malaysia. By June 30, there were about 80,000 transactions involving 3.2 million litres of subsidised diesel worth nearly RM7 million [5, 6].
Subsidised fuel prices under other schemes remain unchanged, with RON95 at RM1.99 per litre (Budi95), and diesel at RM2.05 (SKPS) and RM2.15 (SKDS) per litre [1, 2, 3, 4].
Private diesel vehicle users in Klang Valley said the subsidy has eased their operating costs and helped maintain affordable prices. Food vendor Abdul Hakim noted, "When diesel prices were high, we had to charge customers an additional transportation fee for catering orders. Now, we do not have to burden customers as much." He added, "The subsidy helps us maintain those prices," pointing to his RM6 laksa price versus competitors charging RM7 or RM8 [7].
Lorry driver Muhammad Syahrul Ahmad said, "Since the subsidised price came in, there have been noticeable savings. I hope the government can maintain the current price. The cheaper it is, the better for everyone." Private fruit distributor Muhammad Azhar Abdul Razak called the RM2.10 price "a big relief," but said the 200-litre quota is insufficient for his long-distance travel needs [7].
