KUALA LUMPUR: The Ministry of Finance (MOF) is studying the implementation of a more targeted diesel subsidy mechanism, similar to BUDI95, for Sabah and Sarawak, said MADANI government spokesperson Datuk Fahmi Fadzil.
He said the matter is currently under review by MOF before any decision is finalised.
"So, this is currently being studied for implementation by the ministry,” he said at a briefing on the global supply crisis and post-Cabinet meeting press conference here today.
However, he said the proposal to streamline diesel subsidies between Sabah, Sarawak and the Peninsula has not yet been discussed in the Cabinet meeting.
On March 28, 2026, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said the proposed targeted diesel subsidy mechanism will be discussed with the Sabah and Sarawak state governments before its rollout.
Commenting on the global supply market situation, Fahmi said the government is constantly monitoring movements in world crude oil prices to determine the next steps regarding the country’s fuel subsidy policy, including BUDI95 and BUDI Diesel.
Fahmi, who is also Communications Minister, said the National Economic Action Council (NEAC) had informed that crude oil supply for Petroliam Nasional Bhd (Petronas) is at a satisfactory level for May and June.
"At the same time, the NEAC is also seriously monitoring global price movements, whether crude oil or petroleum products such as RON95 and diesel, following current developments related to the Strait of Hormuz, which is still closed.
"So, several government measures and efforts related to BUDI95, BUDI Diesel, and BUDI individuals will be streamlined, and this matter is still under review. But the focus now is supply stabilisation and the impact of global oil prices,” he said.
Yesterday, Economy Minister Akmal Nasrullah Mohd Nasir said that in a prolonged supply disruption, the restoration of crude oil supply is expected to take between three months and 12 months, while repairs to damaged oil and gas infrastructure will require a longer period.
He said the average price of Brent crude oil (spot) in the global market decreased by 6.7 per cent to US$109.94 per barrel (US$1=RM3.94) for the period April 20-24, 2026, compared to US$117.84 per barrel in the previous week.
However, he said a comparison of prices at the beginning and end of the week showed an increase of 6.5 per cent. - Bernama
