Malaysia has announced that fuel prices will remain unchanged from Jul. 9 to 15, with eligible motorists under the Budi95 subsidy programme continuing to enjoy RON95 petrol at RM1.99 (S$0.63) per litre.
The Malaysian Finance Ministry said retail prices for RON97, unsubsidised RON95 and diesel would also remain stable amid moderating global crude oil prices and a recovering supply outlook.
While Malaysians benefit from one of the region’s lowest fuel prices due to government subsidies, drivers in Singapore continue to pay considerably more at local petrol stations.
Fuel prices in Singapore generally remain above S$2 per litre for most petrol grades before discounts, depending on the brand and fuel type. Premium grades can cost even more, making fuel in Singapore several times more expensive than subsidised RON95 across the Causeway.
Singapore does not subsidise fuel prices and instead allows market forces to determine pump prices. Factors such as global oil prices, operating costs, taxes and retailer margins contribute to the final amount motorists pay.
The stark difference in fuel costs has long been a talking point among Singaporean drivers, particularly those who frequently travel to Malaysia. However, Singapore-registered vehicles are prohibited from purchasing Malaysia’s subsidised RON95 petrol under Malaysian regulations and must use the more expensive RON97 grade instead.
Malaysia’s Finance Ministry said fuel supplies remain sufficient and urged motorists to use fuel prudently, noting that efficient journey planning and reducing unnecessary travel can help ease pressure on government subsidy expenditure.
The ministry also cautioned that geopolitical tensions in the Middle East and potential disruptions to major trade routes could still trigger future price volatility despite the current stability in global oil markets.