The increase is a direct response to the “escalating global energy crunch” triggered by the conflict in Iran, which has sent domestic fuel prices soaring to record highs this month.

The extra assistance is available to all registered recipients under the BUDI Diesel Individual and BUDI Diesel Agri-Commodity categories.

According to MoF, the measure is intended to ensure that those most affected by market volatility receive appropriate support as the government continues its efforts to manage the rising cost of living.

“The MADANI Government remains committed to protecting the welfare of the people, particularly in facing the challenges of rising global fuel prices,” the ministry said in a social media post.

This latest injection of funds aims to mitigate the impact of the sharp price adjustments that took effect across Peninsular Malaysia on March 12.

Due to the ongoing conflict in Iran, unsubsidised fuel prices saw a dramatic spike; diesel in Peninsular Malaysia jumped by 80 sen to RM3.92 per litre, while RON97 and unsubsidised RON95 both rose by 60 sen to RM3.85 and RM3.27 per litre, respectively.

While the market rates have fluctuated wildly, the government has maintained its “safety net” policies by keeping the subsidised BUDI95 petrol rate frozen at RM1.99 per litre.

Additionally, diesel prices in Sabah, Sarawak, and Labuan remain unaffected by the current surge, staying at the regional ceiling of RM2.15 per litre. - malaymail