Kuala lumpur: Retail prices of unsubsidised RON97 and RON95 petrol are set to increase by 20 sen per litre each, with unsubsidised diesel seeing a rise of 35 sen per litre from July 23 to 29. This adjustment follows a spike in global crude oil prices, largely driven by escalating geopolitical tensions in West Asia.

According to BERNAMA News Agency, the Finance Ministry (MOF) announced that the retail price of RON97 will be adjusted to RM4.20 per litre, up from RM4. Meanwhile, the price of unsubsidised RON95 will increase to RM3.62 per litre from RM3.42. Unsubsidised diesel will now cost RM4.42 per litre, compared to the previous RM4.07.

The MOF cited that these price changes are a result of the global oil market's response to rising Brent crude prices, which surged by 16 percent last week. This increase was triggered by renewed tensions between the United States and Iran after a ceasefire expired, leading to concerns over potential disruptions in global petroleum supplies.

"Shipping restrictions and reduced vessel traffic through the Strait of Hormuz have heightened concerns over disruptions to global petroleum supplies," the MOF stated. Additionally, the ministry noted that crude oil prices are being driven up by tightening global inventories and potential threats to oil shipments from Saudi Arabia, contributing to the volatile nature of the global petroleum market.

Efforts to revive negotiations and proposals for a ceasefire have somewhat moderated the price increase. However, these measures have not fully alleviated market concerns about possible supply disruptions. Despite these challenges, subsidised fuel prices will remain unchanged during the same period.

While the fuel supply in the country remains stable for the time being, the MOF has urged the public to use fuel prudently. "Planning journeys more efficiently and reducing unnecessary travel can help prolong the nation's fuel supply and ease pressure on subsidy expenditure," the ministry advised.