PUTRAJAYA, MALAYSIA March 24, 2026 – Prime Minister Dato’ Seri Anwar Ibrahim has directly addressed growing public questions about why petrol and diesel prices in Malaysia are rising despite the country being a net oil producer.
In a detailed explanatory video posted on X (formerly Twitter) on 22 March 2026, the Prime Minister linked the price pressure to the ongoing conflict in West Asia triggered by attacks on Iran by Israel and the United States, which has disrupted the critical Strait of Hormuz.
“Sejak kenaikan harga minyak dunia susulan konflik di Asia Barat… ramai yang bertanya mengapa harga minyak di Malaysia turut terkesan,” Anwar said.
Key facts highlighted in the video and accompanying statement:
– The Strait of Hormuz is the world’s main oil transit route, carrying about 20% of global crude oil supply. Nearly 46% (almost 50%) of Malaysia’s oil supply passes through this chokepoint.
– Although Malaysia produces and exports oil (valued at around US$5.5 billion last year), the country **imports far more** – approximately US$12.6 billion – resulting in a net deficit of over US$7 billion.
– When the Strait of Hormuz is affected, global crude oil prices surge dramatically. In less than a week, Brent crude has climbed from around US$70 to nearly US$120 per barrel – a more than 70% jump.
To protect the people from the full impact, the MADANI Government has dramatically increased subsidies:
– Monthly subsidies for RON95 and diesel have risen from RM700 million to RM3.2 billion in under a week.
– Through the BUDI MADANI RON95 (BUDI95) and BUDI Diesel programmes, the majority of consumers and businesses continue to enjoy subsidised prices and do not pay full market rates (currently RON95 at RM3.02 per litre and diesel at RM4.36 per litre in the open market).
“In this uncertain global situation, protecting the welfare and well-being of the rakyat remains the top priority of the Kerajaan MADANI,” Anwar stressed.
The Prime Minister ended the video on a note of resilience, stating that Malaysia has the strength to overcome these challenges together, just as it has done in the past.
The statement comes as many Malaysians have expressed concern over fuel costs amid the geopolitical tensions. The government’s swift subsidy boost is aimed at cushioning the impact on households, businesses, food prices, and overall living costs.
*Life News Agency will continue to monitor developments on global oil prices and government measures.*
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