PUTRAJAYA, MALAYSIA March 11, 2026 – In a bid to shield citizens from the ripple effects of escalating tensions in West Asia, Prime Minister Dato’ Seri Anwar Ibrahim has announced that the Malaysian government will strive to keep the price of subsidized RON95 petrol, known as BUDI95, fixed at RM1.99 per liter. This decision comes amid a sharp rise in global crude oil prices, which have climbed to around US$100 per barrel due to disruptions in energy supply chains stemming from the ongoing conflict.
Speaking at a gathering with staff from the Ministry of Domestic Trade and Cost of Living (KPDN), Anwar emphasized the government’s commitment to protecting public welfare.
“Today, oil prices have risen by up to US$100 per barrel, yet we have maintained the RON95 price at RM1.99. We will continue to make every effort to ensure that this does not burden the public,” he stated. The Prime Minister highlighted that Malaysia, as an open trading nation, is vulnerable to increased transportation costs and inflationary pressures but remains stable compared to neighboring countries experiencing sudden price hikes.
Petronas, the national oil company, has confirmed that Malaysia’s petroleum supply is sufficient until May 2026, attributing this to professional and responsible management of the nation’s oil resources. Anwar noted that the subsidized price under the BUDI Madani scheme could be sustained for up to two months under current global conditions, though prolonged disruptions—such as those potentially affecting the Strait of Hormuz—could pose broader economic challenges.
To offset the fiscal strain from maintaining subsidies, the MADANI government is implementing cost-saving measures. These include canceling Aidilfitri open houses organized by ministries, government agencies, and government-linked companies (GLCs), as well as restricting overseas travel for administration members. Anwar assured that the government will closely monitor the situation and introduce additional steps if needed to safeguard economic stability and public well-being.
Economists have weighed in on the announcement, noting that while the price cap provides short-term relief, it may increase fiscal pressure on the government if oil prices remain elevated. For context, the non-subsidized market price for RON95 currently stands at RM2.67 per liter, underscoring the significant subsidy being provided to eligible Malaysians.
The Prime Minister’s office reiterated that these measures reflect the MADANI administration’s proactive approach to global uncertainties, urging civil servants, businesses, and the public to remain vigilant. As the conflict in West Asia continues to unfold, Malaysia’s strategy aims to balance economic resilience with affordability for everyday essentials.
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