The current fuel situation in Malaysia shows a parallel trend of optimization of traditional fuel policies and accelerated development of renewable fuels. In terms of traditional fuels, targeted subsidies are implemented for Malaysian citizens on RON95 gasoline, with the price maintained at 1.99 ringgit per liter and a monthly limit of 300 liters per person. Non-citizens and foreign-registered vehicles need to purchase higher-priced fuel products at market prices (RON95 for non-citizens is about 2.6 ringgit per liter, and RON97 for foreign vehicles is about 3.21 ringgit per liter). Recently, there has been a slight price reduction for fuel products such as RON97 and unsubsidized RON95. The government monitors and adjusts prices weekly through an automatic pricing mechanism to ensure market stability. In the field of renewable fuels, significant progress has been made. Ground transportation vehicles at Kuala Lumpur Airport have been upgraded to use B20 biodiesel, and major ports are also piloting the application of related biofuels. Regarding sustainable aviation fuel (SAF), Malaysia's first SAF biorefinery with an annual capacity of 350,000 tons has been put into operation, with plans to achieve an initial capacity of 1 million tons per year by 2027. Furthermore, international flights at Kuala Lumpur International Airport will be required to use a 1% SAF blending ratio, gradually progressing toward the 47% target by 2050. Additionally, as an important oil and gas producer in Southeast Asia, Malaysia is optimizing its energy structure (by increasing coal imports for power generation) to free up natural gas resources for liquefied natural gas exports, thereby balancing energy economy and supply-demand requirements.
