MOF: Unsubsidised petrol and diesel to rise 10-20 sen per litre from Aug 20-26

Petrol and diesel prices in Malaysia are set to rise between 10 sen and 20 sen per litre, effective August 20-26, according to the Ministry of Finance (MOF). The hike is attributed to global geopolitical instability impacting crude oil prices and supplies. The Automatic Pricing Mechanism (APM) determines the retail price of RON97, which will increase by 10 sen to RM4.25 per litre, up from RM4.15.

Unsubsidised RON95 will see a 15 sen surge to RM3.77 per litre, from RM3.62, while diesel will rise by 20 sen to RM4.67 per litre, from RM4.47. Notably, subsidised petrol products, such as BUDI Madani RON95 (RM1.99 per litre) and BUDI Madani Diesel (RM2.10 per litre), remain unchanged. Additionally, the prices of Subsidised Petrol Control System (SKPS) at RM2.05 per litre and Subsidised Diesel Control System (SKDS) at RM2.15 per litre remain unchanged.

The government bears a significant subsidy for BUDI95 (RM1.78 per litre, or 47% of the unsubsidised price) and BUDI Diesel (RM2.57 per litre, or 55% of the unsubsidised price). The ongoing conflicts between the US, Israel, Iran, and Russia-Ukraine have led to restrictions on traffic through the Strait of Hormuz, further exacerbating global petroleum supply issues.

As long as these conflicts persist and the Strait of Hormuz remains blocked, petroleum prices are expected to remain volatile. The Madani government is committed to mitigating the impact of this crisis on people and businesses, urging citizens to practice fuel conservation. Measures like planning more efficient journeys and reducing unnecessary travel can help alleviate pressure on fuel supply and subsidy expenditure.

The ministry assures that the Madani government will adopt a prudent approach to protect people from price fluctuations while maintaining sufficient fuel supply and security.