Fuel prices cut, subsidy support expands amid global energy pressures

THE Government has reduced fuel prices nationwide for the coming week, even as it ramps up subsidy spending and targeted assistance to shield consumers and critical sectors from continued volatility in global energy markets.

Under the Automatic Pricing Mechanism, the Ministry of Finance announced today that the retail price of diesel in Peninsular Malaysia will drop sharply by 75 sen to RM5.97 per litre.

Petrol prices have also been revised downwards, with RON95 set at RM4.02 per litre and RON97 at RM5.10 per litre, each reflecting a 25 sen reduction for the period from 16 to 22 April 2026.

The government said the price adjustments follow a decline in international oil prices, but cautioned that risks remain elevated due to the ongoing conflict in West Asia, which continues to pose uncertainties for global supply chains.

Authorities said they would maintain close monitoring of the situation to ensure uninterrupted fuel supply while protecting households and businesses from the full impact of external disruptions.

Targeted subsidy programmes remain in place, with RON95 under the BUDI95 scheme capped at RM1.99 per litre.

Diesel prices in Sabah, Sarawak and Labuan continue at RM2.15 per litre, while controlled pricing under existing subsidy systems stands at RM2.05 for petrol and RM2.15 for diesel.

In response to sustained cost pressures, the government has increased cash assistance under the BUDI Diesel initiative to RM400 per month for April 2026.

The enhanced support will benefit approximately 350,000 recipients under the BUDI Individual and BUDI Agri-Commodity categories, with an additional fiscal allocation of RM35 million monthly.

The latest increase marks the second upward revision in recent months, following an earlier adjustment from RM200 to RM300 in March 2026 as global petroleum prices climbed.

Further support has been extended to the agriculture sector, with the Tillage Incentive for Paddy Farmers raised from RM160 to RM300 per hectare for the 2026 planting season.

The measure, involving roughly RM40 million in additional funding, is expected to benefit nearly 200,000 farmers grappling with rising input costs.

At current price levels, the government estimates its monthly subsidy bill at approximately RM7 billion.

Subsidies for RON95 alone have surged from about RM300 million per month prior to the present global tensions to around RM4 billion, while diesel subsidies have increased from roughly RM400 million to RM3 billion monthly.

The government said it would continue to respond to global developments with calibrated measures aimed at maintaining energy stability and strengthening protection for the public against ongoing economic pressures. - April 15, 2026