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
Read: Saudi Arabia Cuts Oil Supply to Asia: Are EVs Now the Only 'War-Proof' Cars?
Written By
Sofea Najmi
A Bachelor of English Language and Literature graduate with an obsession for the finer details. Sofea uses her background in translation to decode the technicalities of automotive innovation. She is dedicated to delivering impactful, meticulously researched articles that provide a narrative far beyond the spec sheet. LinkedIn: https://bit.ly/3C018vv
JPJ Running Numbers
KUALA LUMPUR
VRW5994
SELANGOR
BSU7312
JOHOR
JG6512J
PULAU PINANG
PSH748
PERAK
APM6057
PAHANG
CFJ2939
KEDAH
KGJ6538
NEGERI SEMBILAN
NEM4576
KOTA KINABALU
SJU8394
KUCHING
QAB8942P
Last updated 30 Oct, 2026
Fuel Price
Petrol
RON 95
RM 3.97
+1.38
RON 97
RM 4.90
+1.75
RON 100
RM 7.20
+2.20
VPR
RM 8.23
+2.00
Diesel
EURO 5 B10
RM 5.12
+2.08
EURO 5 B7
RM 5.32
+2.08
Last updated 30 Apr, 2026
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