Fuel prices in Malaysia have dropped by 5 sen per litre as of today (September 3), with RON97, unsubsidised RON95, and unsubsidised diesel all seeing a reduction.
In a statement yesterday, the Ministry of Finance (MOF) said the new prices will remain in effect from September 3 to 9, 2026. RON97 will fall from RM4.30 to RM4.25 per litre, while unsubsidised RON95 will drop from RM3.82 to RM3.77 per litre. Meanwhile, unsubsidised diesel will be priced at RM4.67 per litre, down from RM4.72 previously.
Global oil prices behind the drop
According to Harian Metro, MOF said the reduction reflects lower global crude oil prices recorded for most of the calculation period under the Automatic Pricing Mechanism (APM).
However, oil prices rose again towards the end of the period amid ongoing geopolitical tensions in West Asia.
The ministry said the global refined petroleum product markets remain tight due to disruptions to petroleum flows through the Strait of Hormuz, reduced refining capacity and fuel export restrictions.
China has also begun easing restrictions on refined petroleum product exports introduced in March 2026. However, supplies of some petroleum products to regional markets have yet to return to pre-conflict levels, despite exports increasing significantly since July.
MOF also warned that these factors could continue to contribute to fluctuations in fuel prices in the near term.
Subsidised RON95 remains at RM1.99
For Malaysians eligible under BUDI MADANI, the lower unsubsidised RON95 price means the government will continue absorbing a significant portion of the cost.
Under BUDI95, eligible users will continue paying just RM1.99 per litre for RON95, with the government covering RM1.78 per litre in subsidies.
For eligible BUDI Diesel recipients, the retail price remains RM2.10 per litre, with the government providing RM2.57 per litre in subsidies. Meanwhile, petrol under the Subsidised Petrol Control System (SKPS) remains at RM2.05 per litre, while diesel under the Subsidised Diesel Control System (SKDS) stays at RM2.15 per litre.
The government also raised the basic monthly eligibility limit for BUDI95 and BUDI Diesel back to 300 litres from 1 September. Eligible owners of diesel-powered pickup trucks and jeeps will also receive an additional 100-litre allocation, bringing their monthly limit to up to 400 litres.
While unsubsidised fuel prices are heading down this week, eligible Malaysians will continue to enjoy the existing subsidised rates.
