Kuala lumpur: Retail prices of unsubsidised petroleum products across the country are set to rise by 10 to 20 sen per litre for the period of August 20 to 26, due to global geopolitical tensions impacting crude oil prices and supply chains.
According to BERNAMA News Agency, the Ministry of Finance (MOF) announced that, using the Automatic Pricing Mechanism (APM) formula, the retail price of RON97 will see an increase of 10 sen, moving to RM4.25 per litre from the previous RM4.15. Meanwhile, unsubsidised RON95 will go up by 15 sen, reaching RM3.77 per litre from RM3.62, and unsubsidised diesel will rise by 20 sen to RM4.67 per litre from RM4.47.
The prices for subsidised petroleum products remain unchanged, with BUDI MADANI RON95 (BUDI95) priced at RM1.99 per litre and BUDI MADANI Diesel (BUDI Diesel) at RM2.10 per litre. Similarly, the prices under the Subsidised Petrol Control System (SKPS) and Subsidised Diesel Control System (SKDS) are maintained at RM2.05 and RM2.15 per litre, respectively.
The MOF highlighted that the government subsidizes RM1.78 per litre for BUDI95, equating to approximately 47% of the unsubsidised RON95 price, and RM2.57 per litre for BUDI Diesel, which is 55% of the unsubsidised diesel price.
The statement pointed out that ongoing geopolitical tensions, specifically the 172-day conflict involving the United States, Israel, and Iran, have led to persistent restrictions on traffic through the Strait of Hormuz, affecting global crude oil supplies. Additionally, the Russia-Ukraine conflict has further strained petroleum supplies, particularly following Ukraine's attack on a Russian oil refinery.
The MOF emphasized that the unresolved conflict in West Asia and the disrupted flow of petroleum through the Strait of Hormuz are likely to cause continued volatility in petroleum product prices. The MADANI government remains committed to shielding its citizens and businesses from the adverse impacts of these global issues.
The ministry further encouraged the public to practice fuel conservation by planning more efficient travel and reducing unnecessary journeys to alleviate the pressure on the nation's fuel supply and subsidy expenditure. The MADANI government assured its dedication to a prudent approach in safeguarding the population against price fluctuations, while ensuring a sufficient and secure fuel supply for the country.