In Malaysia, fuel prices are regulated by the government. The government monitors the changes in global crude oil prices and make readjustments to fuel prices on a weekly basis.
Specifically, the Ministry of Finance Malaysia announces the weekly fuel prices every Wednesday to the public.
Types Of Petrol In Malaysia
When filling up fuel at petrol stations, you’ve probably noticed that a petrol pump has nozzles in different colors. This is to indicate the different types of petrol dispensed from the pump.
The most common fuels found in petrol stations in Malaysia are the RON95 and RON97. RON95 is dispensed from yellow nozzles while RON97 comes out from green nozzles. In 2016, petrol company Petron introduced RON100 premium grade fuels.
If you didn’t know, RON stands for Research Octane Number which measures the octane levels in unleaded fuels. High octane fuels are able to withstand more pressure in the engine before combusting. When using low octane fuel, it can result in combustion earlier than expected in the engine and causes damage.
Now, this doesn’t mean that higher-level octane fuels are the best option for your car. Not all engines can support higher-level octane fuels and vice versa. However, generally, larger cars that have engines with higher compression are more suited to use higher octane fuels. For example, luxury cars with an engine greater than 2,500cc are more suited to use the RON97 petrol and RON100 petrol.
Pricings For RON95, RON97 and RON100
The price for different types of petrol can vary significantly in Malaysia. The table below shows the pricing of fuels in Malaysia in the months of March and April 2025.
| Week | RON95 (per litre) | RON97 (per litre) |
| 6 March 2025 | RM2.05 | RM3.38 |
| 13 March 2025 | RM2.05 | RM3.28 |
| 20 March 2025 | RM2.05 | RM3.28 |
| 27 March 2025 | RM2.05 | RM3.28 |
| 3 April 2025 | RM2.05 | RM3.33 |
| 10 April 2025 | RM2.05 | RM3.28 |
| 17 April 2025 | RM2.05 | RM3.18 |
| 24 April 2025 | RM2.05 | RM3.18 |
Source: Department of Statistics Malaysia (DOSM)
As you can see, RON95 fuel is cheaper at RM2.05 per litre. This is because RON95 petrol is subsidised by the Malaysia government had been kept at a fixed price of RM2.05 per litre since 2017.
The RON95 petrol, which is used for standard cars is the most commonly used petrol in Malaysia and is kept at an affordable price for Malaysian citizens. The RON95 fuel is not available for foreign-registered vehicles.
The price of the higher-grade RON97 fuel, which was previously subsidised, was floated in the market in 2009. As you can observe from the table above, the price of RON97 fluctuates according to market price.
Not all petrol companies offer the RON100 fuel, which is used for luxury cars. Petron currently sells the RON100 fuel for RM5.00 per litre.
Targeted Subsidy For RON95 Fuel
Since the 1980s, the Malaysian government has been offering subsidies for fuel to help low-income households afford it. When the market price exceeded the retail price, the government covered the price difference to maintain fuel prices at a certain level.
However, as petrol prices continue to rise over the years, the increasing subsidy expenditure has become a financial burden on the government.
Malaysia is one of the countries that offer the highest fuel subsidies in the region. During the tabling of Budget 2024, Prime Minister Anwar Ibrahim allocated a total of RM81 billion for subsidies, one of the highest in the nation’s history. He also added that he will be implementing targeted subsidy so that the funds will reach and assist households who require them.
Currently, there has been leakages whereby subsidised resources including fuels are used by those who are not eligible for it. Wealthy individuals, foreign nationals and businesses, constituting 15% of consumers, disproportionately benefit from 40% of the RON95 subsidy, amounting to RM8 billion.
With that, the Malaysia government plans to implement targeted subsidies for RON95 petrol starting from mid 2025. The government is working out a way to implement the targeted subsidies to ensure that 85% of the population will still be able to enjoy the fuel subsidies.
Read Also: How Diesel And Other Fuel Subsidies Work In Malaysia?
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