KUALA LUMPUR, March 12 — Amid a global energy crunch triggered by the escalating conflict in Iran, the Ministry of Finance has announced a sharp increase in fuel prices for Peninsular Malaysia.

However, the government has reiterated that the BUDI95 targeted subsidy at RM1.99 per litre despite the unprecedented market volatility.

Effective from today to March 18, retail prices for unsubsidised petrol and diesel will see significant adjustments.

RON97 will rise by 60 sen to RM3.85 per litre, while unsubsidised RON95 will also see a 60 sen jump to RM3.27 per litre.

The steepest hike affects diesel in Peninsular Malaysia, which will increase by 80 sen to RM3.92 per litre.

Meanwhile, diesel prices in Sabah, Sarawak, and Labuan will be maintained at the current regional ceiling of RM2.15 per litre.

The sharp price adjustments reflect the direct impact of the Iran war on global crude oil supply chains, which have faced extreme uncertainty in recent days.

The MADANI government reiterated that the targeted subsidy initiative is designed specifically to protect the most vulnerable segments of the population from such external shocks.

In its announcement, the ministry said that it will continue to support Malaysians through the BUDI MADANI initiative and additional cash assistance programmes as the global oil market continues to fluctuate.

The government added that it is closely monitoring the geopolitical situation and its potential impact on domestic inflation, assuring the public that maintaining the RM1.99 ceiling for eligible citizens remains a top priority during this crisis.