Why Is Global Oil Falling But Our Petrol Price Is Still High? — MOF Explains The 'Lag'

Since Wednesday’s price hike, social media has been buzzing with "Oil is down, so why is RON95 RM4.27?" The Ministry of Finance (MOF) has finally cleared the air, and the answer is simpler than you think: Your fuel price is a look back at last week’s receipt, not today’s market.

RM1.99 vs RM4.27: The Massive Shield You Didn't Notice

While the "unsubsidized" price is what makes the headlines, most Malaysians are still being shielded by a massive government buffer. Here is the breakdown for April 9 – 15, 2026:

For every liter of RON95 you pump under your BUDI95 quota, the government is paying RM2.28 so you don't have to. Without this, a full 50L tank would cost you RM213.50 instead of RM99.50.

Why Doesn't the Price Drop Immediately?

According to reports by Bernama, the MOF indicates that current pump prices are still catching up to earlier high supply costs. 

While global prices fluctuate daily, the fuel currently in our system was procured when costs were significantly higher. Think of it like a "slow-moving tanker", even if the market turns today, the supply chain takes time to reflect those changes at the station. As noted in recent press citations, these prices are heavily influenced by the previous week's average, which included record highs of US$150 per barrel for petrol.

Think of it like buying groceries: if a shopkeeper bought eggs at a high price yesterday, they can’t sell them to you at a discount today just because the farm lowered their prices this morning, they have to clear the "expensive" stock first.

Read: Stop Bleeding Profit: Top 4 Fuel-Efficient E-Hailing Cars for 2026

The Bottom Line: Is Malaysia Still "Lucky"?

Malaysians are still lucky? Read here.

When you look at the Global Mirror, the answer is a resounding yes. While our neighbors in the Philippines are moving to 4-day work weeks and Sri Lanka is rationing just 15L per week, Malaysia is maintaining a RM4 billion monthly subsidy burden to keep the country moving.

Read: Saudi Arabia Cuts Oil Supply to Asia: Are EVs Now the Only 'War-Proof' Cars?

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

Read: Bye-Bye RM1.99? Why Your Petrol Subsidy is Now a 'Timed' Reality