The ministry of finance has stated that increased petroleum prices are not purely due to increased crude oil prices, as the ongoing conflict in the Middle East has led to heightened risk towards the global petroleum supply chain.
As an example, insurance premiums have increased to 17 times the amount before the conflict, as the Middle East region has been categorised a high-risk zone. Meanwhile, delivery costs have tripled due to the increase in oil prices as well as longer routes due to detours to avoid conflict zones, according to the finance ministry.
This has led cost increases along the entire supply and petroleum refining chain which far exceed the increases in the price of crude oil, which eventually leads to the effect upon retail prices of fuels, it said.
The ministry of finance also reiterated that despite extraordinary conditions worldwide, Malaysian citizens with active driving licences continue to enjoy subsidised RON 95 petrol under the Budi Madani RON 95 scheme (Budi95) at RM1.99 per litre, even though the unsubsidised price of the fuel has nearly doubled since the conflict began.
The ministry added that Budi Diesel cash assistance has been increased to RM400 for the month of April, or double the original amount when Budi Diesel was announced at the end of 2025.
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Good job! Comments worthy of 20sen
Well once it goes up don’t bring it down, this is your chance to end the subsidy drug addiction, do away with the subsidy. People need to curb their joyrides and needless wastage of fuel. Vehicles that are way old to be fit for the roads need to be totally written off, those are highest fuel consumers and there are a lot of those junk out on the roads. High fuel prices will force those low-lifes to finally get rid of those dastardly trash cans on wheels.
To be resilient,
We need to keep our raw material, energy price very low, not only gasoline, electric and water too. They are crucial for global level of production, delivery and export.
We need to reuse, optimize, maximized with latest available technologies, in before Vietnam, India, Indonesia, Thailand ahead of us.