Malaysia’s Petrol Prices Just Exploded. Here’s What’s Going On

If you are going to top-up your car’s fuel tank this week, you might end up reeling at the prices listed at the gas pump. Malaysian fuel prices just took one of their biggest leaps in recent memory, and it all traces back to a conflict brewing thousands of kilometres away.

Tensions in the Middle East have been running high since February 2026, when Israel and the US launched attacks on Iran, which later triggered a counter-attack by Tehran on US interests in the Gulf. That set off a chain reaction in global energy markets that Malaysians are now feeling firsthand.

Brent crude briefly rocketed to US$119 per barrel on 9 March before pulling back to around US$90, but with markets still on edge, the damage to pump prices was already done. 

So what exactly went up?

Both RON95 and RON97 rose by 60 sen per litre, while diesel in Peninsular Malaysia climbed by 80 sen per litre. For the week of March 12–18, unsubsidised prices now sit at RM3.85 for RON97, RM3.27 for RON95, and RM3.92 for diesel. Ouch.

But wait, what about your RM1.99 RON95?

Here’s the good news. The MADANI Government is holding the subsidised RON95 price steady at RM1.99 per litre through its BUDI95 initiative, and has bumped up BUDI Diesel cash assistance to RM300 per month on an interim basis, up from RM200. So if you’re an eligible Malaysian driver, your day-to-day fill-up hasn’t changed, at least for now.

Why is this such a big deal globally?

It comes down to one very narrow stretch of water. The Strait of Hormuz, nestled between Iran and Oman, is one of the world’s most critical shipping lanes, with a huge chunk of global oil and gas passing through it every single day. Any disruption there doesn’t just affect the Middle East; it sends shockwaves through energy markets worldwide.

What’s the government doing?

Quite a lot, actually. Finance Minister II Datuk Seri Amir Hamzah Azizan chaired the first meeting of a newly formed Special Committee on Energy Security and the Impact of the Middle East Conflict on 11 March, with findings due to be presented at a Special Cabinet Meeting on 13 March. The committee spans six ministries and Bank Negara Malaysia, all working to assess the fallout and protect the economy.

The Ministry of Finance has also warned that enforcement against subsidy leakage will be stepped up, a reminder that Malaysia’s pump prices, even after this hike, remain a bargain compared to what drivers in neighbouring countries are paying.

The situation is still developing, so keep your ear to the ground.