Retail prices for non-subsidised petroleum products will fall from August 13 to 19, with RON97 dropping by 20 sen per litre, while non-subsidised RON95 and diesel will decrease by 15 sen and 10 sen respectively.
According to the Ministry of Finance (MOF), RON97 will be priced at RM4.15 per litre, down from RM4.35 previously. Non-subsidised RON95 will fall from RM3.77 to RM3.62 per litre, while non-subsidised diesel will decrease from RM4.57 to RM4.47 per litre.
Meanwhile, subsidised fuel prices will remain unchanged, with RON95 under BUDI Madani RON95 (BUDI95) staying at RM1.99 per litre and diesel under BUDI Madani Diesel (BUDI Diesel) remaining at RM2.10 per litre.
The MOF said the Madani Government is absorbing RM1.63 per litre in subsidies for eligible BUDI95 users, equivalent to about 82 per cent of the RM1.99 pump price. For BUDI Diesel, the Government is providing RM2.37 per litre in subsidies, equivalent to about 113 per cent of the RM2.10 pump price.
Prices under the Subsidised Petrol Control System (SKPS) and Subsidised Diesel Control System (SKDS) will also remain unchanged at RM2.05 and RM2.15 per litre respectively.
The ministry said the latest reductions followed a decline in global oil prices last week, as hopes of a resolution to the conflict between the United States and Iran pushed crude prices lower for much of the week.
Brent crude fell below US$80 per barrel at the beginning of the Automatic Pricing Mechanism (APM) calculation period, marking its lowest level in three weeks.
However, geopolitical risk premiums rose again towards the end of the calculation period as prospects for US-Iran negotiations weakened following new demands from both sides.
“Brent crude prices rose by almost five per cent on Monday as concerns over the reopening of the Strait of Hormuz intensified,” the ministry said.
The MOF warned that uncertainty surrounding the reopening of the Strait of Hormuz continued to pose risks of disruptions to global oil supplies, putting further pressure on petroleum prices.
“With this, petroleum product prices are expected to continue experiencing significant fluctuations in the near term,” it said.
