Malaysian retail fuel prices for RON97, unsubsidised RON95, and unsubsidised diesel will increase by 35 sen per litre for the week of September 17 to 23, 2026, driven by soaring global crude markets as West Asian conflicts escalate past their 200th day.
Escalating West Asian Conflict Drives Global Fuel Surge
The Ministry of Finance announced that retail prices across key fuel categories will climb by 35 sen per litre for the weekly period running from September 17 through September 23, 2026. Under the adjustment, RON97 climbs to RM4.85 per litre from RM4.50, while unsubsidised RON95 rises to RM4.37 from its previous price of RM4.02. Unsubsidised diesel jumps to RM5.27 per litre, up from RM4.92, continuing a sustained upward trend in domestic energy costs.
According to official government statements reported by Bernama, the price hikes stem directly from intensifying geopolitical instability in West Asia as the regional conflict crosses the 200-day mark. Disruptions have severely constrained maritime trade routes and regional petroleum infrastructure, forcing global benchmarks upward during the Automatic Pricing Mechanism calculation window.
“Kerajaan MADANI akan terus mengambil pendekatan berhemat bagi melindungi rakyat daripada turun naik harga, di samping memastikan bekalan bahan api negara kekal mencukupi dan terjamin,”
Ministry of Finance
Strait of Hormuz Disruption and Crude Pressures
Energy markets have absorbed severe shocks following a sharp escalation in regional hostilities.
“Iran had attacked 10 vessels near the Strait of Hormuz in retaliation for US attacks on five Iranian tankers, while attacks also extended to Yemen and Saudi Arabia’s energy infrastructure. Vessel traffic through the Strait of Hormuz had fallen to single-digit levels following the surge in attacks.”
Ministry of Finance
The logistical crisis deepened further when drone strikes forced a temporary shutdown of Saudi Arabia’s East-West Pipeline, a primary artery designed to bypass the restricted strait. At the same time, diplomatic efforts stalled as talks between Iran and Gulf nations regarding shipping security were postponed. These compounding disruptions pushed benchmark Brent crude past US$100 per barrel, hovering near US$110 per barrel during the pricing period.
Targeted Subsidies and Quota Adjustments for Consumers
While unsubsidised commercial and open-market fuel consumers absorb the full weight of the 35 sen increase, the government maintains targeted relief measures.
Eligible motorists enrolled in the BUDI MADANI initiative continue to receive substantial protection from market volatility. Under the BUDI95 framework, qualified recipients pay RM1.99 per litre for RON95, with the state absorbing a subsidy of RM2.38 per litre, which accounts for 54 per cent of the market price. BUDI Diesel recipients pay RM2.10 per litre, supported by a government subsidy of RM3.17 per litre, or 60 per cent of the unsubsidised price.
| Fuel Type | Unsubsidised Price | Subsidised Price | Government Subsidy Share |
|---|---|---|---|
| RON95 | RM4.37 | RM1.99 | RM2.38 (54%) |
| Diesel | RM5.27 | RM2.10 | RM3.17 (60%) |
Additionally, qualified owners of diesel-powered pickup trucks and jeeps receive an extra 100 litres, raising their total monthly allocation to 400 litres.
Outlook Amid Protracted Global Volatility
Financial authorities warn that persistent tensions in West Asia, compounded by the prolonged Russia-Ukraine conflict, threaten to keep international petroleum markets unstable for the foreseeable future.
“Kerajaan Madani katanya, akan terus mengambil pendekatan berhemah bagi melindungi rakyat daripada turun naik harga, di samping memastikan bekalan bahan api negara kekal mencukupi dan terjamin.”
Ministry of Finance
