KUALA LUMPUR: The government's subsidy bill for RON95 petrol and diesel is projected to remain high at about RM3.5bil a month at current market prices, amid the ongoing conflict in the Middle East, says the Finance Ministry.
Of the total, subsidies for RON95 petrol are estimated at RM2bil a month, while diesel subsidies are projected at around RM1.5bil a month, the ministry said.
"Although the global petroleum market has shown signs of greater stability in recent weeks, the international oil market continues to be influenced by uncertainties surrounding physical supply, global inventory levels and seasonal demand across several key regions," the Finance Ministry said in a statement on Wednesday (June 10).
Global Brent crude prices have eased to around US$90 a barrel from a previous high of US$120 a barrel.
However, monthly subsidies for RON95 petrol and diesel surged to RM5bil in March 2026 and peaked at RM7.5bil in April 2026, compared with RM700mil in January 2026, the ministry added.
The ministry said the country's petroleum supply remains stable and sufficient, supported by supply planning measures to ensure continuity in the months ahead.
At the same time, the Madani government continues to strengthen long-term energy security measures and targeted subsidy initiatives as the global supply crisis persists, the ministry said.
It also said the targeted subsidy approach helps ease cost pressures on the public while ensuring critical sectors of the economy continue to operate smoothly amid challenging global conditions.
Under the Budi Madani RON95 programme, the government continues to maintain the subsidised RON95 price at RM1.99 per litre for more than 14 million eligible recipients.
"The government will continue to adopt a balanced approach to ensure the rakyat remain protected, while maintaining prudent fiscal management and safeguarding the country's fuel supply security," the ministry said. – Bernama
