Fuel prices drop: Finance ministry announce lowered petrol and diesel rates amid easing global market

PUTRAJAYA, June 24 — The Ministry of Finance today announced a reduction in retail prices for petrol and unsubsidised diesel for the week of June 25 to June 30, 2026, citing a decline in average international market prices.

Under the Automatic Pricing Mechanism (APM), the price of RON97 and unsubsidised RON95 will both drop by 25 sen. RON97 will now cost RM4.10 per litre, while unsubsidised RON95 will be priced at RM3.47 per litre. Meanwhile, diesel in Peninsular Malaysia will see a 30 sen decrease, bringing the price down to RM4.07 per litre.

The ministry attributed the price cuts to more favourable global petroleum market developments, specifically pointing to the moderation of global crude oil prices and positive progress in the West Asian conflict.

However, the government cautioned that the global petroleum market still faces medium-term uncertainties. Risks include the potential failure of peace negotiations to reach a final resolution, prolonged supply chain recovery, and inventory and logistics costs that have yet to return to pre-conflict levels.

Despite these fluctuations, the Madani government assured the public that it remains committed to protecting citizens through targeted subsidies. Subsidised fuel prices will remain unchanged. Under the BUDI Madani RON95 (BUDI95) scheme, over 14 million eligible recipients will continue to pay RM1.99 per litre for RON95.

Other subsidised rates remain at RM2.15 per litre for diesel in Sabah, Sarawak, and Labuan, RM2.05 per litre under the Subsidised Petrol Control System (SKPS), and RM2.15 per litre under the Subsidised Diesel Control System (SKDS).

To further bolster long-term supply security, the government is pursuing strategic partnerships with international allies, including Turkmenistan and Russia. Although the national fuel supply remains sufficient, the ministry urged the public to continue practicing prudent fuel consumption.

"Efficient travel planning and reducing unnecessary trips can help stretch the national supply and ease the pressure on subsidy expenditures," the ministry said in a statement.

In a related development, the government announced that the BUDI Madani Diesel (BUDI Diesel) scheme will be implemented nationwide starting July 1, 2026, to standardise the diesel subsidy mechanism.

Under this initiative, eligible private diesel vehicle owners will be able to purchase subsidised diesel at RM2.10 per litre using their MyKad. Subsidies for strategic and critical sectors—such as fishermen, smallholder farmers, the commodity sector, and land public transport—will also be maintained.

The Finance Ministry reiterated its commitment to a prudent fiscal approach, balancing the need to protect the public from market volatility with the necessity of ensuring a sufficient and secure national fuel supply.

Retail price

Current maintained subsidised prices as follows: