Know Your Petrol Price

Learn more about the weekly petrol price adjustment by the new Pakatan Harapan government.


The Ex-Minister of Ministry of Domestic Trade, Co-operatives and Consumerism (KPDNKK), Datuk Hamzah Zainuddin originally announced in March 2017 that the Weekly Fuel Ceiling Price will be introduced by the end of the same month. According to Datuk Hamzah, a new ceiling price will be announced on every Wednesday of the week and it will take effect at 12:00am the following day, Thursday.

Starting from September to December 2018, the petrol price adjustments will be announced in monthly basis instead of weekly. Sales and Service Tax (SST) will also be introduced on the first day of the same month but at this point of writing, all fuels including RON95, RON97 and Diesel will be exempted from the SST.

On 5 January 2019, the Government reintroduced the weekly petrol price floating system, similar to pre-Pakatan Harapan era.

On 27 November 2019, the Government announced that the price per litre for RON95 will be gradually increased in Peninsular Malaysia by 1 to 2 sen per week until it reaches the market price. However, consumers in Sabah, Sarawak and Labuan will still enjoy the same subsidized rate at RM2.08 per litre. Scheme for Diesel remain unchanged and is capped at RM2.18 per litre.

The New Government

The new Malaysian government, which was led by the Prime Minister, Tun Dr. Mahathir bin Mohamad, has officially announced on 18th of May, 2018, a different approach on the petrol prices in Malaysia. The prices of RON95 and Diesel will be maintained at a fixed price to ease the burden of the people, while the difference will be subsidized by the Government. However, the RON97 was subject to free float according to the world's oil market prices. The monthly price announcement will be made a day before the start of the month.

The retailers or the petrol station owners, are then allowed to set their selling price individually at the same or lower than the announced prices. In some circumstances, they may offer a flash promotion, driving the motorists to their stations and be competitive to their rivals nearby. Consumers, however, will get the most benefits out of the competitions.

This clearly shows the commitment to the promises made by the Pakatan Harapan government to stabilize the petrol prices in hope that it will also stabilize the economy of the country.

On 5th of January 2019, the Government has reintroduced the old weekly price floating system, where we will see the price adjustments to be done every week instead of every month. The decision has affected the petrol station dealers, exposing them to greater risk of oil price fluctuations. As a counter-measure of the situation, the station dealers have made decisions such as reducing their daily operating hours from 24 hours to 18 hours, and some have suggested to let go some employees as the minimum wages have been increased.

How does the Government calculate the ceiling price?

The factors of average cost of petroleum production versus the currency rate conversion of the week will be taken into considerations while determining the ceiling price of the week. The ministry will then factor in the other costs such as operation cost, transportation cost and retail profit margin before finalizing and announcing the new prices.

That is to say, the up and down trend of the weekly petrol prices are reflective to the world oil prices and the overall impact to the local production base on multiple relevant factors.

Disclaimer: This website serves as a platform for petrol price references only and not to be regard as an official page of any authorities or parties involved in the implementation of the petrol price adjustments. We hereby held no responsibilities over any losses or damages caused to you by any inaccuracy of the content, if any, that was published on this website.

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