Fuel prices are set to climb sharply this week, with RON97, unsubsidised RON95 and unsubsidised diesel each rising by 25 sen per litre from Sept 10 to Sept 16, following a spike in global crude oil prices amid renewed tensions in West Asia.
The Finance Ministry (MOF) shared that under the latest Automatic Pricing Mechanism (APM), RON97 will increase to RM4.50 per litre from RM4.25, while unsubsidised RON95 will rise to RM4.02 from RM3.77. Unsubsidised diesel will climb to RM4.92 per litre from RM4.67.
MOF attributed the increase to a sharp rise in global crude prices as the conflict between the US and Iran intensified, adding to concerns over potential petroleum supply disruptions through the Strait of Hormuz.
Brent crude rose during the APM calculation period and reached US$97.31 per barrel on Sept 7, while continued retaliatory attacks between the US and Iran pushed up the geopolitical risk premium on global oil supplies.
The ministry said global refined petroleum markets also remained tight, with refinery disruptions in West Asia and continued attacks on Russian refineries reducing supplies of petrol, diesel and other petroleum products.
International diesel prices have risen faster than crude oil as refining capacity remains constrained and inventories continue to fall. Petroleum flows through the Strait of Hormuz and global refining capacity have yet to return to normal after 193 days of conflict in West Asia.
Meanwhile, eligible BUDI MADANI recipients will remain shielded from the latest increase.
BUDI95 recipients will continue paying RM1.99 per litre for RON95, compared with the unsubsidised price of RM4.02, translating into a government subsidy of RM2.03 per litre.
BUDI Diesel recipients will continue paying RM2.10 per litre, against the unsubsidised diesel price of RM4.92, with the government absorbing RM2.82 per litre.
Prices under the subsidised petrol and diesel control schemes also remain unchanged at RM2.05 per litre under SKPS and RM2.15 per litre under SKDS.
