Kuala Lampur:According to BERNAMA News Agency, the Ministry of Finance has announced a reduction in the retail prices of RON97 and unsubsidised RON95 petrol by 5 sen per litre, and a 15 sen decrease per litre for unsubsidised diesel, effective from October 1 to 7. The new prices are set at RM5 per litre for RON97, RM4.52 per litre for unsubsidised RON95, and RM5.27 per litre for unsubsidised diesel.

This price drop is attributed to the moderation of average global crude oil prices during the Automatic Pricing Mechanism calculation period, spurred by the resumption of Saudi Arabia's East-West pipeline operations. Additionally, the supply of refined petroleum products in Asia is improving, with China's exports in September estimated to exceed four million tonnes, helping to alleviate regional price pressures.

However, the Ministry cautions that the global supply recovery is uneven. A recent Ukrainian drone attack forced a major Russian refinery in Perm to halt operations, affecting Russian diesel supply to the international market. The ongoing conflict involving the United States and Iran also contributes to potential price volatility, particularly if new attacks occur in the Middle East.

The MADANI Government aims to shield citizens and businesses from global market instability by maintaining targeted subsidies through programs like BUDI MADANI, BUDI Diesel, the Subsidised Petrol Control System, and the Subsidised Diesel Control System. Under these subsidies, BUDI MADANI RON95 recipients pay RM1.99 per litre, with the government covering a subsidy of RM2.53 per litre, while BUDI MADANI Diesel recipients pay RM2.10 per litre, benefiting from a government subsidy of RM3.17 per litre.