Motorists will have to pay more for unsubsidised petrol and diesel this week, with the retail prices of RON95, RON97 and diesel each rising by 25 sen per litre from Sept 10 to 16.
The Ministry of Finance (MOF) said on Wednesday that unsubsidised RON95 will increase 6.63% to RM4.02 per litre, up from RM3.77 previously. Diesel will rise 5.35% to RM4.92 from RM4.67, while RON97 will go up 5.9% to RM4.50 from RM4.25.
The ministry attributed the increase to a sharp jump in global crude oil prices, which reached US$97.31 (RM407.64) per barrel during the Automatic Pricing Mechanism (APM) calculation period following renewed escalation in the conflict between the US and Iran.
It also cited growing concerns over potential disruptions to petroleum supplies through the Strait of Hormuz. Brent crude oil was trading at US$100.48 a barrel as of Wednesday.
The MOF said international refined petroleum product markets also remained tight, with disruptions to refining capacity in West Asia and continued attacks on Russian refineries reducing global supplies of petrol, diesel and other petroleum products.
Diesel prices have risen faster than crude oil prices in international markets due to limited refining capacity and falling inventories, it added.
“After 193 days of conflict in West Asia, petroleum flows through the Strait of Hormuz and global refining capacity have yet to return to normal,” the ministry said, warning that prolonged disruptions could further tighten supplies and increase the risk premium on petrol and diesel prices.
Despite the increase in unsubsidised prices, eligible Malaysians will continue to enjoy subsidised rates under the Budi Madani programme.
Eligible Budi95 recipients will continue paying RM1.99 per litre for RON95, with the government absorbing RM2.03 per litre in subsidies, equivalent to 50% of the unsubsidised price.
Meanwhile, eligible Budi Diesel recipients will continue paying RM2.10 per litre, with the government providing a subsidy of RM2.82 per litre, or 57% of the unsubsidised price.
The subsidised RON95 price under Budi95 remains at RM1.99 per litre, while diesel under Budi Diesel remains at RM2.10. Prices under the Subsidised Petrol Control System and Subsidised Diesel Control System remain at RM2.05 and RM2.15 per litre respectively.
From Sept 1, the basic monthly eligibility limit for Budi95 and Budi Diesel was increased to 300 litres. Eligible owners of diesel-powered pickup trucks and jeeps will receive an additional 100 litres, bringing their monthly allocation to up to 400 litres.
The MOF said the government would continue taking a prudent approach to protect the public from global fuel price fluctuations while ensuring the country’s fuel supply remains sufficient and secure.
