The question “Why RON95 price fixed Malaysia?” is something almost every Malaysian driver has asked at least once. When global oil prices go up or down, many people notice that RON97 changes weekly — but RON95 stays the same. Why?
The reason behind RON95 price fixed Malaysia is mainly government subsidy and price control policy. Unlike free-market fuel pricing, RON95 is heavily regulated to protect the public from sudden price shocks. Let’s understand this in simple terms.
RON95 is a type of petrol with an octane rating of 95. It is the most widely used fuel in Malaysia because:
- It is affordable
- Suitable for most cars
- Subsidized by the government
In Malaysia, fuel types mainly include:
- RON95
- RON97
- Diesel
You can check the latest updates here:
Read more: https://malaysiaprice.com/petrol-price/malaysia-ron95-price-today/
Why RON95 Price Fixed Malaysia?
1️⃣ Government Subsidy System
The biggest reason RON95 price fixed Malaysia is government subsidy.
Malaysia uses a fuel subsidy system. When global oil prices rise, the government pays the difference so consumers still pay a stable price. This protects low- and middle-income households from inflation.
Without subsidy, the price would fluctuate weekly like RON97.
2️⃣ Protecting Cost of Living
Fuel directly affects:
- Transportation costs
- Food prices
- Delivery charges
- Daily expenses
If RON95 fluctuated every week, inflation would increase sharply. By keeping the RON95 price fixed Malaysia, the government stabilizes the economy.
You can compare with other fuel changes here:
Read more: https://malaysiaprice.com/petrol-price/why-petrol-price-changes/
3️⃣ Weekly Floating Mechanism (But With Cap)
Malaysia uses an Automatic Pricing Mechanism (APM). Normally, fuel prices are calculated weekly based on global crude oil prices and currency exchange rates.
However, for RON95:
- There is a price ceiling
- Government absorbs excess cost
So technically, the price is calculated weekly — but consumers don’t feel the change because of subsidy.
4️⃣ Political and Economic Stability
Fuel prices are sensitive in any country. A sudden increase can cause:
- Public dissatisfaction
- Protests
- Inflation spike
Keeping RON95 price fixed Malaysia helps maintain political and social stability.
Is RON95 Really Fixed Forever?
No, it is not permanently fixed.
The government may revise the price if:
- Global oil prices stay high for long
- Subsidy burden becomes too heavy
- New targeted subsidy system is introduced
In fact, discussions about targeted subsidies happen often.
For comparison with overall petrol trends:
Read more: https://malaysiaprice.com/petrol-price/malaysia-petrol-price-today/
Difference Between RON95 and RON97 Pricing
| Feature | RON95 | RON97 |
|---|---|---|
| Subsidized | Yes | No |
| Price Changes | Usually fixed | Weekly |
| Target Users | General public | Premium car users |
| Government Control | High | Low |
RON97 follows global market price closely. That’s why you see frequent changes.
How Diesel Pricing Is Different
Diesel also has government control, but policies vary depending on:
- Peninsula Malaysia
- Sabah
- Sarawak
For diesel updates:
Read more: https://malaysiaprice.com/petrol-price/malaysia-diesel-price-today/
How Global Oil Prices Affect Malaysia
Even though RON95 price fixed Malaysia, global oil still matters.
Malaysia imports and exports petroleum products. So when crude oil prices increase:
- Government subsidy cost increases
- National budget gets pressure
- Fiscal deficit may rise
If subsidies become too expensive, reforms are introduced.
Advantages of Fixed RON95 Price
✔ Predictable fuel cost
✔ Stable inflation
✔ Protects low-income groups
✔ Encourages economic planning
Disadvantages of Fixed Pricing
❌ High government subsidy burden
❌ Budget strain
❌ Benefits high-income drivers too
❌ Risk of smuggling to neighboring countries
This is why targeted subsidy discussions are ongoing.
Will Malaysia Remove Fuel Subsidy?
Experts believe Malaysia may eventually:
- Introduce targeted subsidies
- Use income-based fuel assistance
- Digital fuel monitoring
But sudden removal is unlikely because it would impact millions.
Final Thoughts
So, why RON95 price fixed Malaysia?
The simple answer is: Government subsidy + economic stability + cost of living control.
While global oil prices fluctuate, Malaysians are protected through price control policies. However, this comes with a cost — the government must pay billions in subsidies.
In the long run, Malaysia may shift to targeted subsidy systems, but for now, the RON95 price fixed Malaysia strategy continues to protect consumers.
FAQs
RON95 is subsidized by the government, while RON97 follows global market pricing.
No, it can change if the government revises subsidy policies.
Mainly middle- and lower-income households.
Yes, but the government absorbs the price difference.
Possible through targeted subsidies, but not suddenly.
