PUBLISHED ONApril 16, 2026 2:22 AMBYSean LerIn tandem with easing global oil prices, the Malaysian government on April 15 (Wednesday) announced that it has decreased pump prices, effective Thursday.
"In accordance with the automatic pricing mechanism (APM) formula, for this week, the retail price of diesel in Peninsular Malaysia, and the retail price of Ron95 and Ron97 petrol have been reduced following the decline in international market prices," said Malaysia's Ministry of Finance in a statement.
The APM is a formula introduced in 1983 to stabilise the price of petrol and diesel in Malaysia based on market fluctuations.
It is a pricing mechanism used by the Malaysian government to track the impact of changes in global crude oil prices and adjust fuel prices to safeguard public welfare.
The latest downward adjustments — by RM0.25 for both Ron 95 and Ron97, and RM0.75 for diesel — eased the 40-cent hike for petrol and 70-cent hike for diesel during the last round of adjustments on April 8.
Meanwhile, the Malaysian government has kept prices of the its subsidised Ron95 petrol unchanged at RM1.99 (S$0.64) per litre, while diesel prices in Sabah, Sarawak and the Federal Territory of Labuan stay at RM2.15 per litre.
Following the announcement, the price of unsubsidised Ron95 petrol now costs RM4.02 per litre, while the price of Ron97 is now RM5.10 per litre.
Since April 1, foreign-registered vehicles are banned from purchasing Ron95 under Malaysia's Control of Supplies Act. Previously, only the sale of Ron95 is prohibited and enforcement action could only be taken against petrol station operators, not the buyers or owners of foreign-registered vehicles.
The Malaysian government also announced an additional diesel cash assistance of RM400 for the month of April. This would benefit 350,000 eligible individuals and Agri-commodity recipients, and is expected to incur the government an additional RM35 million per month.
The Malaysian finance ministry estimates that it will bear around RM7 billion in fuel subsidies per month — up from around RM300 million before the conflict started.
It said that the Malaysian government will continue to closely monitor current developments and take steps to ensure the security of fuel supply, while protecting Malaysians and the country's economic sector from the full impact of supply chain disruptions.
State oil firm Petronas on Wednesday also issued a statement to say that fuel supplies at all its stations is secured until the end of June.
Rodrigo Valdes, the International Monetary Fund's new fiscal affairs chief, said on Wednesday that countries should skip fuel subsidies which help their citizens deal with a shortage of oil and the corresponding surge in energy prices and opt instead for targeted, temporary cash transfers that do not obscure higher prices and keep demand high.
"We don't have oil. We don't have energy. Energy needs to be more expensive for everybody, so that the adjustments happens and we consume less," Valdes told Reuters in an interview.
The IMF also warned that the war in the Middle East has intensified strains on an already fragile global fiscal situation, with higher interest rates and rising energy energy prices already fuelling calls for support from energy markets and developing economies.
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