RON97, unsubsidised RON95 and diesel prices reduced from June 4-10

KUALA LUMPUR – The retail prices of RON97 and unsubsidised RON95 petrol in Peninsular Malaysia decrease by 30 sen and 20 sen to RM4.35 and RM3.72 per litre respectively from June 4 to 10.

The Finance Ministry (MOF), in a statement, said the price of diesel in Peninsular Malaysia was also reduced by 20 sen from RM4.87 to RM4.67 per litre for the same period.

The ministry said the adjustment was in line with the Automatic Pricing Mechanism (APM) formula following a decline in average international market prices the previous week.

During the same period, the Madani Government maintained targeted subsidised prices for the people and selected sectors, covering Budi Madani RON95 (Budi95) at RM1.99 per litre, diesel in Sabah, Sarawak and Labuan at RM2.15 per litre, the Subsidised Petrol Control System (SKPS) at RM2.05 per litre, and the Subsidised Diesel Control System (SKDS) at RM2.15 per litre.

MOF said that at the current unsubsidised RON95 price of RM3.72 per litre, the use of 200 litres would cost RM744.

"This means the Madani Government is bearing up to RM346 for each recipient using the full Budi95 entitlement. However, with a monthly entitlement ceiling of up to 200 litres, Budi95 recipients will pay only up to RM398 per month for full utilisation of the entitlement.

"The unsubsidised diesel price of RM4.67 per litre is more than double the subsidised price of RM2.15 per litre, helping to reduce the impact of diesel prices on the people through public transport costs and consumer goods logistics,” the statement said.

MOF said the reduction in retail fuel prices this week did not indicate a stable global petroleum market, as crude oil and petroleum product prices could remain elevated in the medium term due to ongoing developments and conflict in West Asia.

"Recently, major importing countries in Asia have had to increase their purchases of crude oil from alternative sources to offset supply disruptions from West Asia. Although crude oil imports from the United States to Asia have risen to record levels, the increase remains insufficient to replace the loss of supply through affected major trade routes.

"The situation shows that the global petroleum market is still facing physical supply constraints, despite the average market price recording a decline in the previous week. If the conflict continues, the risk of global inventory depletion and supply shortages could put new pressure on crude oil and petroleum product prices in the coming period,” it said.

In this regard, the Madani Government called on the public to continue practising prudent fuel consumption to help ensure the country's fuel supply security. – BERNAMA