Malaysia’s Ministry of Finance announced retail fuel price reductions for October 1 to 7, 2026, dropping unsubsidised RON97, RON95, and diesel rates amid moderating global crude prices and improving regional petroleum supply.
Weekly Fuel Price Reductions Take Effect Across Malaysia
Malaysians will see relief at the pump for the first week of October as retail fuel prices move downward across the board. The Ministry of Finance announced that unsubsidised RON97 and RON95 petrol will each decrease by 5 sen per litre, while unsubsidised diesel drops by 15 sen per litre for the week of October 1 to 7, 2026.
Under the updated pricing schedule, RON97 retails at RM5.00 per litre, down from RM5.05. Unsubsidised RON95 is priced at RM4.52 per litre, compared to RM4.57 the previous week. Meanwhile, unsubsidised diesel—specifically B10 and B15 diesel blends—drops to RM5.27 per litre from RM5.42, according to weekly pricing updates. Euro 5 B7 diesel, which traditionally costs 20 sen more per litre than the B10 and B15 blends, prices at RM5.47 per litre for the same period.
Global Crude Moderation and Regional Supply Recovery
The ministry attributed the price cuts to a moderation in average global crude oil prices during the Automatic Pricing Mechanism calculation period. That downward pressure followed the resumption of operations at Saudi Arabia’s East-West pipeline.
At the same time, refined petroleum supply across Asia showed tangible signs of recovery. Chinese refined petroleum exports in September were estimated to exceed four million tonnes, up from a monthly average of about three million tonnes last year. Officials noted that this increase in supply helps to reduce part of the pressure on regional petroleum product prices.
Yet the global supply chain remains fragile. A major Russian refinery in Perm was forced to halt operations following a Ukrainian drone attack, restricting Russian diesel exports to international markets. Policymakers warn that price volatility will likely persist as long as geopolitical tensions involving the United States and Iran remain unresolved.
Targeted Subsidies Shield Eligible Motorists
Even with shifting global markets, the government maintained its targeted subsidy framework to protect domestic consumers and businesses. Eligible motorists continue to purchase fuel at heavily discounted rates through established control systems.
Recipients enrolled in the Budi Madani RON95 scheme pay RM1.99 per litre for RON95 petrol, backed by a government subsidy of RM2.53 per litre—equivalent to 56 per cent of the unsubsidised price. Diesel vehicle owners entitled to Budi Madani Diesel continue to pay RM2.10 per litre, supported by a government subsidy of RM3.17 per litre, or 60 per cent of the market rate. Additional commercial allocations under the Subsidised Petrol Control System hold steady at RM2.05 per litre, while the Subsidised Diesel Control System maintains a retail price of RM2.15 per litre.
Eligible drivers holding a valid driving licence operate under a monthly fuel quota that was restored to 300 litres as of September 1. This quota is shared between Budi95 and diesel allocations.
Prudent Usage Urged Amid Ongoing Geopolitical Pressures
While national fuel supplies remain adequate, authorities have called on the public to exercise caution in their energy consumption. Ministry officials encouraged motorists to plan journeys efficiently and cut down on unnecessary travel to extend national supply reserves and ease pressure on public subsidy expenditures.
While the country’s fuel supplies remain sufficient, the rakyat is urged to use it prudently by planning journeys better and reducing unnecessary travel.
Finance Ministry, via The Star
This week’s update marks the 41st weekly fuel pricing announcement of 2026, and the 404th edition since the pricing format launched at the start of 2019.