Kuala lumpur: The retail prices of RON95 and RON97 petrol, along with diesel in Peninsular Malaysia, are set to decrease for the period from May 28 to June 3. The Ministry of Finance (MOF) announced today that the retail price of RON95 petrol will be reduced by 15 sen per litre to RM3.92, RON97 by 20 sen to RM4.65, and diesel by 10 sen to RM4.87 per litre.
According to BERNAMA News Agency, the reduction in prices is in line with the Automatic Price Mechanism (APM) formula, which follows a decrease in the average international market price from the previous week. However, the ministry cautioned that this price drop does not imply a reduction in global petroleum market pressure, as uncertainties due to the ongoing Middle East conflict persist. The damage to oil production and refining facilities in the region is anticipated to take a significant amount of time to recover.
The MOF emphasized that the MADANI Government remains committed to maintaining the prices of subsidised petroleum products in a targeted manner, aiming to support the livelihoods of the people and specific sector operations amidst the uncertain global conditions. The subsidised prices are maintained as follows: RON95 through BUDI95 at RM1.99 per litre, diesel in Sabah, Sarawak, and Labuan at RM2.15, while the Subsidised Petrol Control System (SKPS) and the Subsidised Diesel Control System (SKDS) are priced at RM2.05 and RM2.15 per litre, respectively.
According to MOF, through BUDI95, the government continues to subsidise RON95 for over 14 million eligible recipients, covering more than 90 percent of the total fuel consumption in the country. At the current unsubsidised price of RM3.92 per litre, the consumption of 200 litres would amount to RM784, meaning the government bears RM386 for each full BUDI95 entitlement.
To maintain a balance between cost of living and fiscal expenditure, the government will pursue a targeted approach to shield citizens from fuel price fluctuations and ensure a stable and sufficient national supply. Additionally, the government urges the public to exercise prudent fuel consumption through efficient travel planning and minimizing unnecessary trips to support the security of the country's supply in the volatile global market conditions.