Government Spends Over RM3 Billion Monthly to Keep Fuel Prices Low Ahead of Hari Raya
Government Spends Over RM3 Billion Monthly to Keep Fuel Prices Low Ahead of Hari Raya
The Ministry of Finance (MoF) has disclosed that the government spends more than RM3 billion every month to subsidise fuel under the Budi95 programme and to maintain diesel prices for public transport and goods vehicles. Under this programme, RON 95 petrol is kept at RM1.99 per litre, while diesel remains at RM2.15 per litre for vehicles such as express buses, taxis, lorries, and goods trailers.
In its weekly fuel price announcement for March 19 to 25, the ministry noted that while domestic fuel prices are affected by global market fluctuations, the government has deliberately chosen not to fully pass international price increases to consumers.
The ministry highlighted that due to the ongoing conflict in West Asia, several fuel types have become significantly more expensive. For instance, RON 97 petrol, which was RM3.85 per litre last week, has surged by 70 sen to RM4.55 per litre, while the price of Euro 5 B10 and B20 diesel has increased by 80 sen to RM4.72 per litre. Diesel prices in East Malaysia remain at RM2.15 per litre.
Despite these global price hikes, RON 95 petrol under the Budi95 programme and unsubsidised petrol prices remain unchanged at RM1.99 and RM3.27 per litre respectively, ensuring that Malaysians are not overburdened as they prepare to celebrate Hari Raya Aidilfitri.
Currently, over 400,000 vehicles in the public transport and goods transport sectors benefit from the Subsidised Petrol Control System (SKPS) and Subsidised Diesel Control System (SKDS), helping to keep operating costs low for essential services.
The ministry also reminded the public that although Malaysia produces oil, domestic petroleum products are still largely purchased from the global market, meaning that local fuel prices are closely tied to international movements. “Even with rising global oil prices, Malaysia’s fuel prices remain among the lowest in the region thanks to the government’s subsidy efforts, which help protect consumers and maintain domestic economic stability,” the ministry said.
Vietnam