The Malaysian Ministry of Finance has announced an increase in the retail prices for unsubsidised RON95 petrol and diesel for the week of July 16 to 22, 2026. Unsubsidised RON95 will see a five-sen increase to RM3.42 per litre, while unsubsidised diesel will rise by 10 sen to RM4.07 per litre. The price of RON97 petrol remains unchanged at RM4.00 per litre. These adjustments are part of the government's weekly fuel pricing mechanism, which tracks global market trends.
Government officials attributed the price hikes to heightened geopolitical risks in West Asia. Specifically, recent security concerns regarding trade routes through the Strait of Hormuz and ongoing instability have increased crude oil risk premiums and shipping costs. These external factors directly influence the cost of petroleum products imported into Malaysia, necessitating the adjustment of unsubsidised retail rates.
Despite these increases, the government continues to protect eligible citizens through targeted subsidy programmes. RON95 petrol under the Budi Madani scheme remains priced at RM1.99 per litre, while eligible diesel users continue to pay RM2.10 per litre under the Budi Diesel initiative. These targeted measures are designed to shield vulnerable groups and essential logistics operators from the volatility of global oil prices.
The Ministry of Finance has urged the public to plan their travel efficiently to help conserve fuel and manage national subsidy expenditure. With the government's annual fuel subsidy bill projected to reach nearly RM40 billion for 2026, officials are closely monitoring the fiscal impact of these global energy market fluctuations. The current prices will remain in effect until July 22, at which point the government will review market conditions again.