Malaysia retains fuel support despite slower inflation
Inflation fell to 1.8 per cent in September, but the economy minister said higher oil prices and production costs remained concerns.
Malaysia will continue targeted fuel subsidies despite easing inflation, Economy Minister Akmal Nasrullah Mohd Nasir said in a written parliamentary response. September's inflation rate was 1.8 per cent, down from August 2026's 1.9 per cent.
Akmal Nasrullah cited continuing cost pressures: global crude reached US$116.80 a barrel against August's US$90.90, while Malaysia's Producer Price Index recorded a 12 per cent rise in September 2026 after increasing 10.7 per cent the month before.
He said subsidised RON95 petrol remains priced at RM1.99 per litre through Budi Madani RON95 (Budi95). Its monthly allowance rose to 300 litres from September. For jeep and pick-up truck owners, the Budi Madani Diesel (Budi Diesel) allowance increased to 400 litres.
The Subsidised Petrol Control System and Subsidised Diesel Control System will also remain in place for sectors influencing transport expenses and goods prices. The minister said the support was intended to contain logistics costs and reduce the risk of abrupt domestic price increases.
For 2027, the allocation covering Jualan Rahmah Madani and Jualan Agro Madani has been raised from RM630 million to RM750 million, with a target of 35,000 sales events. Jualan Rahmah Madani is to reach more rural areas, low-cost housing schemes and People's Housing Projects. He said fresh agricultural products under Jualan Agro Madani were offered at prices up to 30 per cent lower.
Support through Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah (Sara) has risen to RM16 billion, he said. Sara now covers fresh produce purchases at 216 farmers' markets or tamu under Fama, and small grocery stores are being brought in as retail partners.
Akmal Nasrullah also said market inspections would continue, with tools such as PriceCatcher tracking changes in prices, particularly those affecting household living costs.
