Fuel price cuts offer relief as unsubsidised RON95 falls 40 sen

Fuel prices have seen a 40-sen reduction for unsubsidised RON95 and a 50-sen drop for RON97, offering relief to motorists and businesses, according to the Ministry of Finance's latest announcement. The new unsubsidised prices are set to take effect from November 12 to 18, with RON97 retailing at RM4.20 per litre, while unsubsidised RON95 will cost RM3.87 per litre, and unsubsidised diesel will be priced at RM4.87 per litre.

This reduction is based on the Automatic Pricing Mechanism (APM), and these figures mark a significant decrease from previous rates.

Despite the price cuts, the government will continue to maintain targeted fuel subsidies to support eligible households and businesses amidst price pressures. Under Budget 2027, fuel subsidies are expected to remain high, amounting to about RM40 billion next year, aimed at alleviating the cost-of-living burden. The BUDI95 scheme will continue to provide eligible consumers with RON95 at RM1.99 per litre, covering the majority of the market price, with the government bearing the remaining 49 percent.

Similarly, BUDI Diesel recipients will continue to pay RM2.10 per litre for diesel, accounting for 57 percent of the unsubsidised price.

The Subsidised Petrol Control System (SKPS) and Subsidised Diesel Control System (SKDS) will maintain subsidised prices at RM2.05 and RM2.15 per litre for RON95 and diesel, respectively. Eligible Malaysians can still purchase subsidised RON95 and diesel using their MyKad, subject to monthly entitlement limits. The Ministry highlighted the lower prices as a result of a decline in refined petroleum product prices in regional markets, influenced by softer global crude oil prices and increased supplies of refined fuels.

However, they warned that global oil markets remain exposed to significant volatility due to ongoing tensions in Iran, with recent attacks on tankers in the Strait of Hormuz posing risks of further supply disruptions.