KUALA LUMPUR, Aug 19 - Unsubsidised fuel will increase by 10 sen to 20 sen per litre from tomorrow to August 26, as global geopolitical instability affects crude oil prices and supplies.
In a statement today, the Finance Ministry (MOF) said that based on the Automatic Pricing Mechanism (APM) formula, RON97 will cost 10 sen more at RM4.25 per litre.
Unsubsidised RON95 will rise by 15 sen to RM3.77 per litre, while unsubsidised diesel will increase by 20 sen to RM4.67 per litre.
Subsidised fuel prices remain, with BUDI95 at RM1.99 per litre and BUDI Diesel at RM2.10 per litre.
Also unchanged are the Subsidised Petrol Control System (SKPS) at RM2.05 per litre and Subsidised Diesel Control System (SKDS) at RM2.15 per litre.
For BUDI95, MOF said the government bears a subsidy of RM1.78 per litre, or about 47 per cent of the unsubsidised RON95 price, while for BUDI Diesel, the subsidy borne by the government is RM2.57 per litre, or 55 per cent of the unsubsidised diesel price.
It said that after 172 days of conflict between the United States, Israel and Iran, restrictions on traffic through the Strait of Hormuz continue to affect global crude oil supplies, with no agreement reached on a resolution.
“Meanwhile, the Russia-Ukraine conflict has also added pressure on global petroleum supplies. During the APM calculation period, Ukraine attacked an oil refinery in Russia, which is the world’s third-largest oil producer,” it said.
MOF said that as long as the West Asia conflict is unresolved and the flow of petroleum through Hormuz is disrupted, fuel prices will remain volatile.
“The Madani government is committed to protecting the people and businesses from the impact of this global crisis as best as possible.
“The people are urged to continue (conserving) fuel. Plan more efficient journeys and reduce unnecessary travel (to) ease pressures on the country’s fuel supply and subsidy expenditure,” MOF added.
