This was the first month of the Budi Madani RON95 subsidy rationalisation programme, which saw the government implementing a targeted subsidy for the first time, moving away from the blanket subsidy of the past that everyone, including foreigners, was entitled to. When I wrote about the need to stay the course on petrol and diesel subsidy rationalisation (The Edge, Issue 1601, Nov 17, 2025), the fuel subsidy bill was largely under control. Barring any unforeseen geopolitical circumstances, crude oil prices were likely to enter a stable phase. This sent oil prices topsy-turvy, surging from the US$60-to-US$70 range to breaching US$120 per barrel on March 9. For now, being a net exporter provides a buffer that allows it to maintain the RON95 pump price at RM1.99 per litre.
