Malaysia will see higher fuel prices for the week of May 21–27, reflecting the continued impact of elevated global oil prices driven by geopolitical tensions . Fuel Prices Increase Across Key Categories The Ministry of Finance announced the following adjustments: RON97: +15 sen to RM4.85/litre Unsubsidised RON95: +20 sen to RM4.07/litre Diesel (Peninsular): +10 sen to RM4.97/litre The increases highlight the pass-through effect of global crude price spikes into domestic fuel costs. Oil Prices Remain Elevated Global energy markets continue to face pressure: Brent crude ~US$110 per barrel Up nearly 60% from pre-conflict levels (~US$70) The prolonged Middle East conflict has: Disrupted supply routes Increased shipping and insurance costs Added inflationary pressure globally Subsidies Cushion Impact for Consumers Despite rising market prices, government subsidies remain in place: Subsidised RON95: ...
Malaysia will see higher fuel prices for the week of May 21–27, reflecting the continued impact of elevated global oil prices driven by geopolitical tensions.
Fuel Prices Increase Across Key Categories
The Ministry of Finance announced the following adjustments:
- RON97: +15 sen to RM4.85/litre
- Unsubsidised RON95: +20 sen to RM4.07/litre
- Diesel (Peninsular): +10 sen to RM4.97/litre
The increases highlight the pass-through effect of global crude price spikes into domestic fuel costs.
Oil Prices Remain Elevated
Global energy markets continue to face pressure:
- Brent crude ~US$110 per barrel
- Up nearly 60% from pre-conflict levels (~US$70)
The prolonged Middle East conflict has:
- Disrupted supply routes
- Increased shipping and insurance costs
- Added inflationary pressure globally
Subsidies Cushion Impact for Consumers
Despite rising market prices, government subsidies remain in place:
- Subsidised RON95: RM1.99/litre (unchanged)
- Diesel (Sabah, Sarawak, Labuan): RM2.15/litre
Under the Budi95 programme:
- 200 litres of RON95 costs RM814 (market price)
- Consumers pay RM398, with RM416 subsidised by the government
This underscores the significant fiscal burden of fuel subsidies.
Inflation Risks and Cost Pressures Build
Higher fuel prices are likely to:
- Increase transport and logistics costs
- Feed into consumer price inflation
- Pressure household spending power
The government has urged consumers to manage fuel usage prudently amid ongoing uncertainty.
Investor Takeaways
- Fuel prices in Malaysia are rising, tracking global oil price increases.
- Brent crude near US$110 reflects ongoing geopolitical supply risks.
- Subsidies continue to shield consumers but increase fiscal pressure.
- Higher fuel costs may drive inflation and impact consumer spending.
- Energy prices remain a key macro risk for markets and policy.
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