Retail prices of petrol and diesel will be reduced starting tomorrow until June 3, following a decline in average international market prices last week.
The Ministry of Finance (MoF) said in a statement that the price of RON97 will be reduced by 20 sen to RM4.65 per litre, down from RM4.85 previously, while RON95 will drop by 15 sen to RM3.92 per litre.
At the same time, diesel prices in Peninsular Malaysia will also decrease by 10 sen to RM4.87 per litre.
The MoF said that although there is a price reduction this week, global market pressures remain as ongoing conflicts in West Asia continue to affect global oil supply and prices.
It added that Brent crude oil prices currently remain above US$100 per barrel, which is more than 50% higher compared to pre-conflict levels of around US$60 to US$70 per barrel.
The situation is also affected by higher shipping costs and insurance premiums due to risks along trade routes in conflict zones.
The government said the risk of global oil supply disruption remains a concern since February 28, with the Strait of Hormuz continuing to serve as a key route for around 20% of global petroleum supply.
It also noted that damage to oil production and refining facilities in the region will take a long time to recover.
The government urged the public to practise fuel-saving habits through better travel planning and reducing unnecessary journeys.
At the same time, the subsidised RON95 price under the targeted subsidy programme Budi95 remains unchanged at RM1.99 per litre for more than 14 million eligible recipients.
The MoF said over 90% of RON95 consumption in the country involves subsidised users.
At the unsubsidised price of RM3.92 per litre, a usage of 200 litres would cost RM784, but the government absorbs a significant portion of the cost under the subsidy scheme.
With a monthly cap of 200 litres, Budi95 recipients only pay up to RM398 per month for full eligible usage.
