Kuala lumpur: The retail prices of RON97, unsubsidised RON95, and unsubsidised diesel will each rise by 5 sen per litre for the period from August 27 to September 2, as announced by the Ministry of Finance (MOF). This adjustment sets the price of RON97 at RM4.30 per litre, up from RM4.25, while the price for unsubsidised RON95 will increase to RM3.82 from RM3.77, and unsubsidised diesel will cost RM4.72, up from RM4.67.
According to BERNAMA News Agency, the prices for subsidised fuels remain unchanged. The subsidised RON95, under the BUDI MADANI RON95 (BUDI95) scheme, continues to be priced at RM1.99 per litre, and subsidised diesel under the BUDI MADANI Diesel (BUDI Diesel) remains at RM2.10 per litre. The prices under the Subsidised Petrol Control System (SKPS) and Subsidised Diesel Control System (SKDS) are also stable at RM2.05 and RM2.15 per litre, respectively.
The MOF reported that the government is bearing a subsidy of RM1.83 per litre for eligible consumers under BUDI95, which amounts to approximately 48 percent of the current unsubsidised RON95 price. For BUDI Diesel, the subsidy is RM2.62 per litre, or 56 percent of the unsubsidised diesel price.
The ministry highlighted ongoing geopolitical uncertainties as a significant factor affecting global petroleum prices and supply. Brent crude oil prices have remained above US$90 a barrel for much of the Automatic Pricing Mechanism (APM) calculation period due to these tensions.
The MOF also noted that restrictions in the Strait of Hormuz have continued to limit global oil supply. Additionally, disruptions in refining capacity in West Asia and Russia have reduced the availability of refined petroleum products, increasing the risk of further price pressures.
The ministry added that after 179 days of conflict involving the United States, Israel, and Iran, around 290 million of the 400 million barrels of oil agreed to be released from the emergency reserves of International Energy Agency (IEA) member countries have been channelled to the market as of July 2026. The depletion of this supply buffer heightens the risk of price pressures should disruptions persist, particularly affecting the tight global diesel market.
Despite a drop in global crude oil prices at the end of the APM calculation period, the decrease was not sufficient to offset the higher price levels observed earlier. As long as the flow of petroleum through the Strait of Hormuz remains restricted and geopolitical uncertainties persist, significant fluctuations in petroleum product prices are anticipated in the near term.