The government will continue efforts to keep the price of RON95 petrol at RM1.99 per litre for Malaysians under the BUDI95 subsidy, despite rising global oil prices. According to Prime Minister Anwar Ibrahim, the administration will do its utmost to maintain the price so that it does not place additional financial pressure on the public.
Speaking at a gathering with staff from the Ministry of Domestic Trade and Cost of Living, Anwar noted that global oil prices have already climbed significantly. He pointed out that Brent crude oil is now hovering around US$100 (about RM396.55) per barrel, but the government is still maintaining the RON95 retail price at RM1.99 per litre. For reference, the Ministry of Finance (MOF) says non-subsidised RON95 petrol in Malaysia is priced at RM2.67/litre as of 5 March 2026.
In a separate statement last week, Anwar said Malaysia could maintain the subsidised RON95 price of RM1.99 per litre for up to two months under the current circumstances. However, he warned that a prolonged disruption to the Strait of Hormuz could trigger wider economic consequences if global energy supply chains are significantly affected.
Rising Middle East Tensions
Global crude oil prices have climbed following escalating tensions in the Middle East. The situation intensified after attacks involving Israel and the United States against Iran on 28 February, which were followed by retaliatory strikes by Tehran against US interests in Gulf countries. The Strait of Hormuz, the narrow sea passage between Iran and Oman, is one of the most critical shipping routes for the global oil and gas industry.
“If the Strait of Hormuz is affected or closed, the impact on global supply and transportation costs will be significant,” he said. Anwar, who also serves as the finance minister, added that the situation has already affected the movement of oil, gas and essential goods, with hundreds of tankers reportedly experiencing delays.
(Source: Bernama)
