The Ministry of Finance announced that retail prices for unsubsidised RON97 petrol, unsubsidised RON95 petrol, and unsubsidised diesel will each increase by 35 sen per litre for the September 17-23, 2026 period, driven by escalating supply constraints and geopolitical tensions in West Asia.
Malaysian motorists face another round of fuel price increases this week. According to announcements from the Ministry of Finance, the upward adjustment applies across all major unsubsidised fuel categories for the seven-day period beginning September 17, 2026. The consistent 35 sen per litre hike mirrors adjustments from previous weeks as global energy markets grapple with severe supply restrictions. According to paultan.org, Euro 5 B7 diesel costs 20 sen per litre more than B10/B15, meaning it will go for RM5.47 per litre in the coming week.
New Retail Price Breakdown Across Fuel Types
Under the updated pricing schedule, the retail price of RON97 climbs from RM4.50 to RM4.85 per litre. Meanwhile, unsubsidised RON95 rises to RM4.37 per litre, up from RM4.02. Unsubsidised diesel sees a corresponding jump, moving from RM4.92 to RM5.27 per litre, as noted in weekly pricing data. These figures mark the 39th edition of the weekly fuel pricing format for 2026 and the 402nd since the format’s introduction at the start of 2019, as reported by paultan.org in its Selamat Hari Malaysia update.
Geopolitical Conflict and West Asian Energy Disruptions
The ministry attributed the relentless surge in global fuel prices to heightened tensions in West Asia as the regional conflict entered its 200th day. Energy infrastructure came under direct pressure during the calculation period. The Star and Bernama both noted that the Middle East conflict terminology was also interchangeably referenced regarding 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, Government of Malaysia
The situation deteriorated further when drone strikes forced the temporary suspension of operations along Saudi Arabia’s East-West Pipeline, a critical transit corridor designed to bypass the Strait of Hormuz.
Refining Constraints and Global Market Pressures
Beyond crude oil supply restrictions, downstream bottlenecks continue to squeeze global markets. Officials explained that capacity outages in Russia and ongoing constraints on crude supplies have limited the output of refined petroleum products. This dynamic keeps refining margins elevated and exerts sustained upward pressure on global petroleum prices, with ongoing conflicts in both West Asia and Ukraine signaling potential for prolonged volatility.
Targeted Subsidies and Quota Adjustments for Consumers
To shield the public and businesses from external market shocks, the government continues to maintain targeted Budi Madani subsidies. Eligible consumers purchasing RON95 under the Budi95 scheme continue to pay RM1.99 per litre, with the government covering a subsidy of RM2.38 per litre, representing 54 per cent of the unsubsidised market price. For Budi Diesel recipients, the price remains fixed at RM2.10 per litre, backed by a government subsidy of RM3.17 per litre according to Bernama, or RM2.62 per litre as cited in calculations reported by The Edge Malaysia (representing 60 per cent of the unsubsidised rate).
The basic monthly eligibility limit for both Budi95 and Budi Diesel was raised to 300 litres effective September 1. In addition, eligible owners of diesel-powered pickup trucks and jeeps qualify for an extra 100 litres, bringing their total monthly allocation to 400 litres. Commercial transport operators continue to rely on separate mechanisms, with the Subsidised Petrol Control System pegged at RM2.05 per litre and the Subsidised Diesel Control System maintained at RM2.15 per litre according to The Edge Malaysia.
“The Madani Government will continue to take a prudent approach to protect the people from price fluctuations while ensuring the nation’s fuel supply remains sufficient and secure,”
Ministry of Finance, Government of Malaysia