17x Higher?! MOF Revealed The Real Reason Petrol Prices Are Climbing (And It’s Not Just Crude Oil)

The Ministry of Finance (MOF) has shed light on why fuel prices are under immense pressure, revealing that it isn’t just about the price of crude oil, it’s about the cost of getting it here.

According to a recent MOF statement, the ongoing conflict in West Asia has turned the region into a "high-risk zone" for global shipping. The impact on the supply chain has been staggering:

• Insurance Premiums: Have surged by up to 17 times compared to pre-conflict levels.
• Shipping Costs: Have tripled, driven by higher fuel consumption and much longer vessel detours to avoid danger zones.
• Supply Chain Impact: These costs along the refining and delivery chain now far exceed the actual increase in crude oil prices.

The Safety Net

Despite these "extraordinary circumstances," the MOF reiterated that the Madani Government is absorbing these massive spikes. While the unsubsidised market price of RON95 has nearly doubled since the conflict began, Malaysians with active licenses continue to pay RM1.99 per litre under the BUDI95 scheme.

Additionally, to combat the rising cost of living, the government has officially doubled the BUDI Diesel aid to RM400 for April 2026, a move designed to protect smallholders and individual diesel vehicle owners from the global price shock.

Read: Strait of Hormuz to Malaysia: Why We’re Paying for a War 6,000km Away

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