KUALA LUMPUR, April 18 — Today’s surge in fuel prices is not solely due to higher crude oil prices following the West Asia conflict, but also to increased risks to the global petroleum supply chain, driving up shipping costs and insurance premiums. 

The Ministry of Finance (MOF) said that, for example, insurance premiums have increased by up to 17 times since the conflict, as West Asia is categorised as a high-risk zone.

“Shipping costs have also jumped threefold, driven by rising oil prices and longer travel routes to avoid conflict areas,” the ministry said in a post on its social media page Friday.

It said rising costs along the petroleum supply chain and refining, which far exceed the increase in crude oil prices, ultimately influenced retail prices at the pump. 

The ministry stressed that, in the extraordinary circumstances affecting the entire world, the Madani government remains committed to protecting the people.

All Malaysian citizens with an active driving licence continue to enjoy the BUDI Madani RON95 (BUDI95) at RM1.99 per litre, even though the unsubsidised price has almost doubled since the West Asia conflict started, according to the MOF. 

The Madani government has also increased the BUDI Diesel subsidy to RM400 for April 2026, the second increase from the original RM200, it said. — Bernama