Thailand has just lowered their diesel selling prices and Malaysia has raised diesel selling prices making Thai diesel better priced than Malaysian diesel for the first time in a very long time.
Effective April 9, 2026, Thailand has reduced its retail diesel prices to provide relief ahead of the Songkran festival, while prices in Peninsular Malaysia have concurrently seen an upward adjustment.
For years, lower priced Malaysian diesel has been smuggled across the border to Thailand via land and also sea and this has cost the Malaysian government billions in lost subsidies.
Now, with diesel prices in Thailand lower than Malaysia, will it be reversed?
The Thai Energy Ministry revised the refinery pricing formula and reduced compensation rates following a decline in global oil prices. This 2.14 baht reduction applies to all diesel types.
Meanwhile, in Peninsular Malaysia, retail diesel prices rose by 70 sen, reaching RM6.72 per litre. This follows a broader policy shift regarding subsidies, though rates in East Malaysia (Sabah and Sarawak) remain capped at the subsidised price of RM2.15. Following these changes, the retail price for B20 diesel in Thailand which is just RM5.40 is currently lower than the unsubsidised retail price in Peninsular Malaysia which is a high RM6.72.
Diesel Price Adjustments as of April 9, 2026
| Country | Diesel Type | New Retail Price | Change |
|---|---|---|---|
| Thailand | B20 Diesel | 43.40 baht(approx. RM5.40) | -2.14 baht(-27 sen) |
| Thailand | B7 Diesel | 48.40 baht(approx. RM6.03) | -2.14 baht(-27 sen) |
| Malaysia | Peninsular (Retail) | RM6.72 | +70 sen |
| Malaysia | Sabah/Sarawak (high subsidy) | RM2.15 | Unchanged |
