KUALA LUMPUR, March 18 — The subsidised price of RON95 under the BUDI Madani RON95 (BUDI95) initiative remains at RM1.99 per litre despite global crude oil prices exceeding US$100 per barrel amid the conflict in West Asia, said the Finance Ministry (MOF).
In a statement today, it said the move aims to protect households while market fuel prices are gradually adjusted in line with global hikes since late February.
MOF said although domestic fuel prices are influenced by international price movements, the government has chosen not to fully pass on the hike to consumers.
It said the government is bearing a subsidy burden exceeding RM3 billion per month following the decision to maintain the BUDI95 price at RM1.99 per litre for Malaysians, as well as diesel at RM2.15 per litre for public transport and the land goods transport sector.
“The decision to maintain the subsidy is to ensure smooth preparations for the Aidilfitri celebrations,” the statement said.
In line with global fuel price changes under the Automatic Pricing Mechanism (APM), MOF said RON97 will cost RM4.55 per litre from tomorrow to March 25, from RM3.85 today.
Diesel in Peninsular Malaysia will rise to RM4.72 per litre from RM3.92, while unsubsidised RON95 and diesel in Sabah, Sarawak and Labuan remain at RM3.27 and RM2.15 per litre, respectively.
MOF said the latest increase in global crude oil and petroleum product prices is due to ongoing geopolitical tensions in West Asia and continued supply uncertainties in the global energy market.
“Although Malaysia is an oil-producing country, petroleum products for domestic use are still sourced from the global market. Therefore, domestic fuel prices remain influenced by international price movements,” it said.
Meanwhile, MOF said more than 400,000 vehicles from the public transport and land goods sectors, including express buses, taxis, lorries and trailers, are protected under targeted subsidy schemes such as the Subsidised Diesel Control System (SKDS) and Subsidised Petrol Control System (SKPS).
It added that the government will continue to be prudent and responsible in managing domestic fuel prices amid ongoing uncertainties in the global oil market.
“Despite rising global oil prices, fuel prices in Malaysia remain among the lowest in the region due to the government’s efforts to retain part of the subsidies to protect the people and ensure domestic economic stability,” MOF said.
