RON97 and Unsubsidised RON95 Down 5 Sen, Diesel Down 10 Sen From 15 October

Malaysian motorists who pay unsubsidised prices got a small break this week. The Finance Ministry announced that RON97 and unsubsidised RON95 would each fall by 5 sen a litre, while diesel would drop by 10 sen, for the period of 15 to 21 October 2026, according to the Finance Ministry's press citation and reports by Malay Mail.

The new prices

For the week of 15 to 21 October:

• RON97: RM5.10 per litre
• Unsubsidised RON95: RM4.62 per litre
• Unsubsidised diesel: RM5.17 per litre

Eligible users of the BUDI MADANI RON95 (BUDI95) subsidy continue to pay RM1.99 per litre for RON95, while eligible diesel users pay RM2.10, according to official information.

How the subsidy gap works

With unsubsidised RON95 at RM4.62, the government is effectively bearing the difference for eligible BUDI95 users. A government infographic noted that this works out to RM2.63 per litre under current prices. That is a significant subsidy, which explains why the scheme has become a major part of the government's spending on cost-of-living support.

The New Straits Times reported that the BUDI95 fuel subsidy has benefited nearly 14 million Malaysians. The Finance Ministry has also said the monthly eligibility limit was raised back to 300 litres.

Key takeaway: most eligible Malaysians will not notice this week's change at the pump, but businesses and non-eligible users paying market prices will see a small saving.

Who pays unsubsidised prices

Unsubsidised prices matter for several groups, including foreigners, companies with fleet vehicles that are not covered, and users who exceed their monthly eligibility limit. RON97 users, who usually drive higher-performance cars, also pay market-linked prices.

For businesses, especially logistics firms, small transport operators and companies with diesel vehicles, weekly price changes affect operating costs. Even a 10 sen drop in diesel adds up for fleets covering long distances.

Why prices change weekly

Malaysia reviews fuel prices weekly using an automatic pricing mechanism linked to global oil prices and other factors. With global oil prices elevated this year due to the Middle East conflict, weekly adjustments have become something motorists and businesses watch closely. Our report on Bank Negara's inflation watch explains how energy prices also influence interest rate decisions.

What it means for Malaysians

Here is what the update means in practice:

1. BUDI95 users: your RON95 price stays at RM1.99 per litre up to your monthly limit.
2. Above the limit: you pay the unsubsidised price, which is now slightly lower this week.
3. Diesel vehicle owners and fleets: a 10 sen drop gives a small reduction in costs if you pay unsubsidised rates.
4. Budgeting: keep an eye on your monthly fuel usage in the app so you know when you are approaching the limit.

Planning your monthly fuel budget

For families, a simple habit helps: check your BUDI95 usage in the middle of each month. If you are close to the limit because of long commutes or balik kampung trips, plan bigger trips early in the month or combine errands. For small businesses, track fuel per vehicle and compare routes, since a few unnecessary trips each week can cost more than the weekly price changes themselves.

What to watch

Fuel prices will continue to be reviewed weekly, so next week's announcement could move in either direction depending on global oil prices. Any changes to subsidy eligibility rules would have a bigger impact on household budgets than weekly price movements.

For now, eligible drivers keep their RM1.99 RON95, while those paying market prices enjoy a modest dip.