Malaysia plans to cut subsidised fuel quota, The Edge says

Published Thu, Mar 26, 2026 · 11:28 AM

[KUALA LUMPUR] Malaysia plans to reduce the monthly subsidised entitlement for its most popular fuel amid a surge in oil prices due to the Middle East conflict, The Edge reported.

The government will cut the current 300-litre quota of RON95 for citizens to 200 litres per month effective April, The Edge said, citing sources it did not name. Consumption exceeding the quota will be based on the market price. Unsubsidised RON95 has been raised twice or by a combined 45 per cent, since Mar 11.

Spokespeople for the finance ministry did not reply to calls and mobile-phone messages seeking comment.

Prime Minister Anwar Ibrahim has pledged to keep RON95 at RM1.99 (S$0.64) per litre despite volatility in crude, though prices of other fuels in Peninsular Malaysia have been adjusted in line with the rise in international prices since the end of February.  

While higher energy prices would bolster government revenues and support national oil company Petroliam Nasional, prolonged volatility risks stoking inflation and raising fuel subsidy costs. Malaysia’s monthly subsidy bill for petrol and diesel has jumped to RM3.2 billion from RM700 million previously.

The government plans to introduce controls on diesel purchases in some states to address the risk of leakages and will strengthen monitoring and enforcement to ensure the country’s fuel supplies remain stable.

Malaysia has enough petroleum products to last through at least May. BLOOMBERG