Malaysia’s Monthly Fuel Subsidies Reach RM4 Billion Amid Oil Price Surge

Malaysia’s Finance Ministry reports that the monthly subsidy cost for petrol and diesel under BUDI95 and BUDI Diesel programs has escalated to RM4 billion due to rising global crude oil prices above US$100 per barrel. This surge significantly increases government expenditure compared to RM0.7 billion in January 2026, highlighting the fiscal pressure from prolonged conflicts in West Asia affecting oil markets. Looking ahead, Prime Minister Anwar Ibrahim’s temporary reduction in BUDI95 eligibility aims to manage subsidy costs and maintain fuel supply security amid ongoing volatility.