PUBLISHED ONJune 25, 2026 12:40 PMBYSean LerFuel prices in Malaysia have fallen for the week of June 25 to 30 amid the general decrease in global oil prices, Ministry of Finance announced on Wednesday (June 24).
Prior to the latest adjustment, petrol prices were held unchanged for three weeks, with the government citing continued short-term risks as it adopted a wait-and-see approach.
For this period, retail prices for unsubsidised Ron95 and Ron97 petrol were reduced by 25 sen each — to RM3.47 (S$1.09), and RM4.10, respectively.
Meanwhile, the price of unsubsidised diesel will also fall by 30 sen, to RM4.07 per litre.
Explaining its decision, the ministry said the reduction reflects the more encouraging development of the global oil market, following the moderation of crude oil prices and developments in the Middle East conflict.
However, it also cautioned that the global petroleum market may still face uncertainties in the medium-term, including the risk of peace negotiations not reaching a final settlement and the time needed for supply chains to recover to pre-conflict levels.
Notwithstanding the considerations, the ministry reaffirmed the government's commitment to protect Malaysians from market price fluctuations through targeted subsidies.
It also pointed to efforts made to strengthen the country's long-term supply security, such as through strategic cooperation with Turkmenistan and Russia.
Malaysia uses the automatic pricing mechanism formula — introduced in 1983 to stabilise fuel prices based on market fluctuations — when determining weekly petrol prices.
Malaysia will lower the price of diesel to RM2.10 per litre nationwide from July after the current difference in prices between subsidised and unsubsidised diesel led to smuggling and revenue losses.
Diesel is currently sold at a subsidised price of RM2.15 per litre in the eastern states of Sabah and Sarawak, compared with RM4.37 in the Malaysian peninsular.
The price gap had created room for revenue leakage and the smuggling of subsidised diesel, including across borders, the finance ministry said in a statement on June 21.
The ministry did not say how the government planned to finance the additional subsidy.
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