The Malaysian government has announced an increase in retail fuel prices starting today, March 5, following a rise in global oil prices. According to the Ministry of Finance, the price of RON97 petrol has increased by 10 sen to RM3.25 per litre, while non-subsidised RON95 rose by 8 sen to RM2.67 per litre. For consumers under the BUDI95 scheme, the subsidised RON95 price remains unchanged at RM1.99 per litre. 

In Peninsular Malaysia, diesel prices have also seen an 8 sen increase, bringing the rate to RM3.12 per litre. However, prices in Sabah, Sarawak, and Labuan remain stable at RM2.15 per litre. These adjustments are based on the Automatic Pricing Mechanism (APM), which tracks global oil market trends while attempting to maintain domestic price stability. 

Economists suggest that the government may need to further rethink the fuel subsidy structure if regional conflicts, particularly in the Middle East, continue to drive up global energy costs. The current inflationary impact in Malaysia remains modest, with forecasts placing the 2026 fiscal deficit on track at 3.5% of GDP. Despite the price hike, the ringgit opened marginally higher today as traders focus on the upcoming Overnight Policy Rate (OPR) announcement.