Fuel prices rise 35 sen amid Middle East tensions

KUALA LUMPUR: The Malaysian Finance Ministry announced fuel price hikes of 35 sen per litre for RON97, unsubsidised RON95 and diesel from September 17 to 23. The Automatic Pricing Mechanism (APM) formula determined RON97 will increase from RM4.50 to RM4.85, while unsubsidised RON95 will rise from RM4.02 to RM4.37, and diesel will escalate from RM4.92 to RM5.27.

Intensified Middle East tensions, including Iran's attacks on 10 vessels near the Hormuz Strait and Saudi Arabia's energy infrastructure, have pushed Brent crude oil prices above US$100 a barrel, nearing US$110 during the APM calculation period. High refining margins due to Russia's disruptions to refining capacity further strained refined petroleum product output, contributing to global petroleum price volatility.

Despite price increases, eligible Budi Madani RON95 (Budi95) recipients will continue paying RM1.99 per litre, with the government bearing a RM2.38 subsidy per litre, or 54% of the unsubsidised price. Similarly, eligible Budi Madani Diesel (Budi Diesel) recipients will pay RM2.10 per litre, with the government subsidy amounting to RM3.17 per litre, or 60% of the unsubsidised price.

The subsidised fuel prices remain at RM1.99 for RON95 (Budi95), RM2.10 for diesel (Budi Diesel), RM2.05 for SKPS, and RM2.15 for SKDS. Eligible Malaysians can purchase subsidised RON95 and diesel using their MyKad, with the basic monthly eligibility limit increased to 300 litres from September 1. Diesel-powered pickup trucks and jeeps will receive an additional 100 litres, allowing a total monthly eligibility of up to 400 litres.