The government will raise the retail prices of unsubsidised RON95 petrol and diesel for the period from July 16 to 22 following renewed geopolitical tensions in the Middle East that have driven global oil prices higher.
In a statement today, the Ministry of Finance (MOF) said the retail price of unsubsidised RON95 will increase by five sen to RM3.42 per litre, while unsubsidised diesel will rise by 10 sen to RM4.07 per litre. The retail price of RON97 remains unchanged at RM4.00 per litre.
The ministry said the adjustments were made under the Automatic Pricing Mechanism (APM), with unsubsidised fuel prices reflecting movements in the global oil market during the previous week.
According to MOF, fresh US strikes on Iran and concerns over the security of shipping routes through the Strait of Hormuz have renewed the risk premium on crude oil and increased shipping costs.
Brent crude has climbed to around US$85 per barrel, up about 20% over the past two weeks, with the ministry warning that petroleum prices are expected to remain volatile until the conflict reaches a definitive resolution.
Despite the higher global prices, MOF said Malaysia’s fuel supply remains sufficient and urged the public to use fuel prudently by planning journeys more efficiently and reducing unnecessary travel to help ease pressure on subsidy expenditure.
Subsidised fuel prices remain unchanged, with BUDI beneficiaries continuing to pay RM1.99 per litre for RON95 and RM2.15 per litre for diesel using their MyKad, subject to eligibility and monthly quotas.
The subsidised prices under the Subsidised Petrol Control System (SKPS) and Subsidised Diesel Control System (SKDS) also remain unchanged at RM2.10 and RM2.05 per litre respectively.
MOF said the government will continue taking a measured approach to shield consumers from fluctuations in global fuel prices while ensuring adequate domestic fuel supplies.
