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Diesel Price Malaysia Live Updates (May 2025)

What do people talk about most often on a daily basis? “What’s the diesel price for this week?” It has become a norm for Malaysians to discuss the price movements for fuel every week. Let’s dive in right now and get straight to the point on petrol and diesel price Malaysia.

Latest Prices for Diesel from 22 May to 28 May 2025

diesel price malaysia update

We have seen an increase of (+3 sen or RM0.03) from RM 2.77 to RM 2.80 per litre for Peninsular Malaysia (PM) while East Malaysia stays unchanged at RM 2.15 sen per litre. 

As said by the Ministry of Finance (MOF) before, prices of petroleum products are all calculated using the Automatic Pricing Mechanism (APM). With the continued efforts from the government to monitor trends of global crude oil prices, consumers can be rest assured that their welfare and well-being are being the top priority of the government.

Diesel Price Malaysia History

Time PeriodDiesel Price MalaysiaMovements
22 May 2025 – 28 May 2025Peninsular RM 2.80, East MY RM 2.15Increase of RM 0.03 for Peninsular MY 
15 May 2025 – 21 May 2025Peninsular RM 2.77, East MY RM 2.15Decrease of RM 0.03 for Peninsular MY 
8 May 2025 – 14 May 2025Peninsular RM 2.80, East MY RM 2.15Decrease of RM 0.08 for Peninsular MY
1 May 2025 – 7 May 2025Peninsular RM 2.88, East MY RM 2.15No movements
24 April 2025 – 30 April 2025Peninsular RM 2.88, East MY RM 2.15No movements
17 April 2025 – 23 April 2025Peninsular RM 2.88, East MY RM 2.15Decrease of RM 0.10 for Peninsular MY
10 April 2025 – 16 April 2025Peninsular RM 2.98, East MY RM 2.15Decrease of RM 0.05 for Peninsular MY
3 April 2025 – 9 April 2025Peninsular RM 3.03, East MY RM 2.15No movements
27 March 2025 – 2 April 2025Peninsular RM 3.03, East MY RM 2.15No movements
20 March 2025 – 26 March 2025Peninsular RM 3.03, East MY RM 2.15Decrease of RM 0.03 for Peninsular MY
13 March 2025 – 19 March 2025Peninsular RM 3.06, East MY RM 2.15Decrease of RM 0.07 for Peninsular MY 
6 March 2025 – 12 March 2025Peninsular RM 3.13, East MY RM 2.15Decrease of RM 0.05 for Peninsular MY 
27 February 2025 – 5 March 2025Peninsular RM 3.18, East MY RM 2.15No movements
20 February 2025 – 26 February 2025Peninsular RM 3.18, East MY RM 2.15No movements

As we can see from our data table compiled by RinggitPlus, diesel prices Malaysia are slowly going down making it more affordable for Malaysians. From 20th February till 28 May, the price went down from RM 3.18 to RM 2.80 which is a staggering 11.95% decrease.

What Influences Petrol and Diesel Price Malaysia?

Fuel prices fluctuate due to influences of factors such as global crude oil prices, exchange rates (Between Malaysian Ringgit and US Dollar) and government subsidies. Petrol and diesel price Malaysia are also affected by taxes and subsidies from the government which directly affects the pricing of fuel. Another factor is international conflicts which can be physical war between countries or trade wars which are economic conflicts between countries and both form trade barriers. All these factors can affect the pricing of fuel and it’s always good to be aware of it.

Not too long ago, the Malaysian government implemented a policy that affected the diesel price Malaysia. On 10th June 2024, the price of diesel went up by almost 36% from RM2.15 to RM3.35 per litre. The reason for the increase in diesel price Malaysia was due to fuel smuggling causing the Malaysian government to lose billions of ringgit. The total cost that the government spent on diesel fuel subsidy last year was RM 14.3 billion in total, let that sink in a while.  

The diesel price Malaysia in Sabah, Sarawak and Labuan is still being subsidised and it remains at RM 2.15 per litre. The reason being, the high cost of living in East Malaysia and the government deemed it necessary to continue the subsidy there to support the growth of the area and the local population.

Many Malaysians were displeased with the price hike of diesel fuel but the government implemented other subsidies such as the Subsidised Diesel Control System (SKDS) 2.0 to eligible logistic vehicles in order to mitigate the impact of increasing consumer goods prices. There are also other targeted programs by the government to ease the mind of struggling Malaysians such as BUDI Individu which provides RM 200 per month for Malaysians owning diesel vehicles to help offset some fuel expenditure.

What Diesel Price Increase Mean for Malaysian SMEs

  1. Increased Expenses

SMEs in Malaysia especially the businesses which are relying on anything diesel related will start to see increasing operational costs. With businesses relying on diesel powered vehicles for logistics, they will have to absorb the costs or reflect it in their product or services by increasing the price. Even for small businesses that rely on diesel generators, they face increased costs. The price increase for diesel directly impacts profit margins and the overall business.

  1. Replanning Cash Flow

With the diesel price Malaysia hike, many SMEs may face cash flow challenges. It directly impacts the cash flow of the business because the business has to start spending more than planned. It will require the business to look back on their cash flow, potentially needing to cut spending in other areas just to maintain a healthy margin.

  1. Spike in Shipping Costs

SMEs who are involved mostly in trading and e-commerce are directly affected. Diesel is an important fuel for transportation when moving goods in and out of the country. The increase in shipping costs will directly affect how the product is priced along with the SME’s competitiveness in the overall market.

Ways to Curb The Diesel Price Malaysia Increase for SMEs

According to Funding Societies, with careful planning and good decisions, your business can still thrive despite the diesel price Malaysia increase. Here’s how:

  1. Look Into Alternative Financing Solutions

With the hike of diesel prices, SMEs must look into a range of financing options beyond the traditional ones. The goal is to maintain a steady cash flow during challenging times, and SMEs can look into options like capital financing or invoice financing.

In addition, SMEs can also apply for certain government programs if their business falls under the category. The government provides diesel subsidies for eligible logistics vehicles and certain land public transports. Another alternative is a program by Bank Negara Malaysia (BNM) which is called All Economic Sectors Facility (AES) and it helps fund your operation expenses.

  1. Bulk Shipping

To reduce transportation costs, businesses can optimise their delivery operations by using combined shipments or planning a more strategic route. By shipping in bulk and doing it less frequently, it reduces the usage of diesel-powered transport and overall reduces fuel expenses.

  1. Move towards Renewable energy

It may be a viable long term solution to reduce reliance on diesel. It will be expensive at first for the initial costs but the overall long term savings may make it a worthwhile investment. Options like electric vehicles and solar energy are really growing exponentially in the market.

The government also provides initiatives like Low Carbon Transition Facility (LCTF), where they allocate up to RM 1 Billion to help businesses adopt better energy efficient solutions.

Be Prepared with The Rising Cost of Diesel Prices with Loan Johor

JohorLoan can play a vital role in helping individuals and SMEs manage the financial strain caused by the spike of diesel prices in Malaysia. Here’s how:

  1. Short-Term Working Capital Loans

SMEs, especially in logistics, construction, and manufacturing, may face higher operational costs due to increased fuel expenses. A loan company can offer short-term financing to help bridge cash flow gaps during these periods.

  1. Flexible Repayment Options
    Some loan companies provide repayment plans that adjust based on business performance, giving SMEs breathing room while they navigate cost increases.
  2. Emergency Fuel Financing
    Certain lenders may offer specific loans to cover sudden fuel cost spikes, ensuring businesses can maintain delivery schedules and daily operations without major disruptions.
  3. Personal Loans for Daily Commuters
    For individuals affected by higher diesel prices, like ride-hailing drivers or those commuting long distances, personal loans can help cover essential transportation costs temporarily.
  4. Refinancing or Restructuring Existing Debt
    A loan company can assist in restructuring or consolidating existing loans, freeing up cash flow that can be redirected toward higher fuel costs.
  5. Business Expansion Support
    For SMEs looking to switch to more fuel-efficient operations (e.g., investing in electric vehicles or optimising routes), loan companies can provide business loan for these strategic upgrades.
  6. Cash Flow Buffer During Inflation
    As diesel price hikes can lead to broader inflationary pressure, loan companies can offer buffer funding that helps SMEs cover increased supplier and logistics costs.

FAQ

1. What is the current diesel price in Malaysia without subsidies?

As of May 2025, the unsubsidised diesel price in Peninsular Malaysia is RM2.80 per litre. This price reflects the market rate following the removal of blanket subsidies in June 2024.

2. What is the current industrial diesel price in Malaysia?

Industrial diesel prices can vary based on supplier contracts and bulk purchasing agreements. However, the general market rate aligns closely with the unsubsidised diesel price, currently at RM2.80 per litre in Peninsular Malaysia.

3. What is the price of Euro 5 diesel in Malaysia?

Euro 5 diesel prices differ based on the blend and region:

4. What are the current petrol and diesel prices in Malaysia?

For the week of May 22–28, 2025:

5. Why did the diesel price in Malaysia spike upwards?

In June 2024, the Malaysian government removed blanket diesel subsidies in Peninsular Malaysia to reduce fiscal burdens and curb fuel smuggling. This led to a significant price increase from RM2.15 to RM3.35 per litre. The government has since implemented targeted subsidies for eligible groups to mitigate the impact.

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