Unsubsidised RON95 drops 20 sen to RM3.72, while diesel falls 20 sen to RM4.67 as global petroleum prices decline.
KUALA LUMPUR: The retail prices of RON97 and unsubsidised RON95 petrol in Peninsular Malaysia will decrease by 30 sen and 20 sen to RM4.35 and RM3.72 per litre respectively, from June 4 to 10.
In a statement today, the Ministry of Finance (MOF) said the price of diesel in Peninsular Malaysia will also be reduced by 20 sen, from RM4.87 to RM4.67 per litre, for the same period.
According to the MOF, the retail price adjustment was in line with the Automatic Pricing Mechanism (APM) formula for the week, which was lowered following a decline in average international market prices the previous week.
During the same period, the MADANI government will maintain targeted subsidised prices for the people and selected sectors, covering 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.
The ministry 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 decrease in retail prices this week did not reflect a stable global petroleum market, but rather the risk that crude oil and petroleum product prices would remain high in the medium term due to the conflict and current developments 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,” said MOF.
In this regard, the MADANI Government has called on the people to continue practising prudent fuel consumption to help ensure the country’s supply security.
