The move comes amid concern that rising fuel prices abroad could make it more profitable to smuggle subsidised fuel out of Malaysia
2-MIN READ2-MIN ListenIman Muttaqin YusofPublished: 7:25pm, 11 Mar 2026Malaysia will tighten border enforcement to curb fuel smuggling and keep subsidised petrol prices unchanged as the widening US-Israeli war with Iran disrupts energy flows through the Strait of Hormuz and rattles global oil markets.The move comes amid concern that rising fuel prices abroad could make smuggling subsidised fuel out of Malaysia more profitable.
He said the government had decided to keep the pump price of subsidised RON95 at 1.99 ringgit (50 US cents) unchanged despite the global increase in crude oil costs, and ordered tighter monitoring of subsidised fuel movements to curb smuggling.
“This is a difficult decision, but it will be maintained at 1.99 ringgit a litre even though the market price is much higher,” he said, without elaborating on how much more the government would spend on subsidies.
Malaysia has long grappled with fuel leakages because subsidised petrol and diesel are sold well below market rates, making them attractive to syndicates operating near land and maritime borders.
