Malaysia raises unsubsidized fuel prices for 29 Oct to 4 Nov

Traders Union
All News
Commodities
Fuel prices rise 29 Oct-4 Nov

Highlights

Unsubsidized RON95 and RON97 prices rose by 10 sen to RM4.42 and RM4.90 per litre, respectively, while diesel rose by 20 sen to RM5.27 per litre from 29 Oct to 4 Nov.
Brent crude prices rose to U.S.$111.36 per barrel amid concerns about supply disruptions in the Middle East, while refined diesel prices in Singapore also increased and petroleum stocks declined.
The Malaysian government is covering around RM40 billion in fuel subsidies in 2025 through the Budi Madani programme, keeping subsidized prices low for eligible groups amid cost-of-living pressures.

This article was translated from the original. Read the original version by our correspondent here.

Weekly price adjustments and reasons for the increase

As reported by The Edge Malaysia, citing the Ministry of Finance, the price of unsubsidized RON95 rose 10 sen per litre to RM4.42 from RM4.32, while unsubsidized RON97 increased 10 sen to RM4.90 from RM4.80. The price of unsubsidized diesel rose 20 sen per litre to RM5.27 from RM5.07 for the period from Thursday to 4 Nov.

The ministry said Brent crude prices rose last week amid concerns about potential supply disruptions in the Middle East. In regional markets, prices for refined diesel in Singapore also increased, while petrol prices moved in mixed directions.

According to the ministry, stocks of several petroleum products in Singapore also declined, although supplies from Northeast Asia are expected to remain stable. At the time of writing on Wednesday, Brent crude was trading at U.S.$111.36 per barrel.

Subsidy impact and cost-of-living protection

Eligible recipients under the Budi Madani RON95 programme, or Budi95, continue to pay RM1.99 per litre. This means the government is covering a subsidy of RM2.43 per litre, equivalent to 55% of the unsubsidized price.

For recipients under the Budi Madani Diesel programme, the price remains RM2.10 per litre, with a government subsidy of RM3.17 per litre, or 60% of the unsubsidized price. Subsidized prices under the Subsidised Petrol Control System and Subsidised Diesel Control System also remain unchanged at RM2.05 and RM2.15 per litre, respectively.

The Ministry of Finance stressed that the government continues to shield consumers and businesses from global price fluctuations through targeted subsidies, including Budi Madani. As announced in Budget 2027, fuel subsidies are expected to remain at around RM40 billion next year to help ease cost-of-living pressures while ensuring domestic supplies are sufficient and secure.

In our previous coverage of Malaysia’s target to reduce its fiscal deficit to below 3% of GDP, we explained how fiscal consolidation depends on targeted subsidy reforms and digitalisation to deliver aid more accurately. We also highlighted that high subsidy spending, along with external factors such as oil prices and social spending pressures, could affect the government’s fiscal trajectory and fiscal space in the future.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.