Finance Ministry: RON97 down to RM5.10, diesel to RM5.17

Malaysia's Finance Ministry has announced a reduction in the retail prices of RON97 and unsubsidised RON95 petrol, as well as a decrease in the price of unsubsidised diesel. Effective from October 15 to 21, the retail price of RON97 will drop by 5 sen per litre to RM5.10, while unsubsidised RON95 will decrease by 5 sen to RM4.62 per litre. Unsubsidised diesel will see a reduction of 10 sen, bringing its price to RM5.17 per litre.

Despite the Brent crude oil prices remaining above US$100 (RM409) per barrel, the Ministry of Finance reported that the supplies of refined petroleum products in the regional market have shown signs of recovery. This comes as China has re-authorised fuel exports for October, and South Korea continues to supply refined petroleum products to the regional market, helping to alleviate supply pressures.

However, the Finance Ministry cautioned that the ongoing conflict in West Asia, including recent attacks in Saudi Arabia, increases the risk of supply disruptions and rising petroleum prices. The ministry expects price volatility to continue in the medium term.

To protect citizens and businesses from the impact of this global uncertainty, the government has announced it will spend RM40 billion on fuel subsidies next year. This will support economic growth and ensure the sustainability of people's livelihoods.

For those eligible for BUDI MADANI RON95 (BUDI95), the subsidy will remain at RM1.99 per litre, compared to the unsubsidised price of RM4.62 per litre. The government will bear a subsidy of RM2.63 per litre, or 57% of the unsubsidised price. Similarly, recipients of BUDI MADANI Diesel (BUDI Diesel) will continue to pay RM2.10 per litre, compared to the unsubsidised diesel price of RM5.17 per litre. The government will provide a subsidy of RM3.07 per litre, or 59% of the unsubsidised price.

Although the country's fuel supply remains sufficient for now, the ministry urges the public to continue practicing prudent fuel consumption. More efficient travel planning and reducing unnecessary trips can help extend the nation's fuel supply and reduce pressure on subsidy expenditure. The ministry reiterated its commitment to taking a prudent approach to protect the people from price fluctuations while ensuring the country's fuel supply remains secure.