Kuala lumpur: The retail prices of unsubsidised RON95 petrol and diesel will increase by five sen and 10 sen per litre respectively for the period from July 16 to 22, amid heightened geopolitical risks in West Asia, the Ministry of Finance (MOF) said.
According to BERNAMA News Agency, the MOF stated in a recent announcement that the retail price of unsubsidised RON95 petrol will be set at RM3.42 per litre, rising from RM3.37 previously. Meanwhile, unsubsidised diesel will be priced at RM4.07 per litre, compared with RM3.97 earlier. The retail price of RON97 petrol will remain unchanged at RM4 per litre.
The increase in prices is based on the Automatic Pricing Mechanism (APM) formula, influenced by the movements in the global oil market during the previous week. The recent US attack on Iran and concerns over the security of trade routes in the Strait of Hormuz have raised crude oil risk premiums and shipping costs. The price of Brent crude oil has reached US$85 per barrel, marking an increase of around 20 percent over the past two weeks. As long as the conflict remains unresolved, prices of petroleum products are expected to continue experiencing volatility in the global market.
While the country's fuel supply remains adequate at present, the MADANI Government has urged the public to practise prudent fuel consumption through more efficient travel planning and by reducing unnecessary journeys. This approach could help prolong the country's fuel supply while reducing pressure on subsidy spending.
Meanwhile, prices of subsidised fuels remain unchanged, with RON95 under the BUDI MADANI (BUDI95) initiative at RM1.99 per litre, BUDI MADANI diesel (BUDI Diesel) at RM2.10 per litre, the Subsidised Petrol Control System (SKPS) at RM2.05 per litre, and the Subsidised Diesel Control System (SKDS) at RM2.15 per litre. Eligible Malaysians may continue purchasing RON95 and subsidised diesel using their MyKad through BUDI95 and BUDI Diesel, subject to their respective eligibility status and monthly balance.
The MOF emphasized that the MADANI Government would continue to adopt a prudent approach to protect the people from price fluctuations while ensuring the country's fuel supply remains sufficient and secure.