Unsubsidised Fuel Prices Rise 35 Sen Per Litre as Global Crude Surges Past US$100

KUALA LUMPUR, Sept 16 — Retail prices for RON97 petrol, unsubsidised RON95 petrol, and unsubsidised diesel will each rise by 35 sen per litre for the Sept 17–23 period following sharp increases in global crude oil prices, the Ministry of Finance (MOF) announced today.

Under the new pricing structure based on the Automatic Pricing Mechanism (APM), the retail price of RON97 will rise to RM4.85 per litre from RM4.50, while unsubsidised RON95 will increase to RM4.37 per litre from RM4.02. The price of unsubsidised diesel will move to RM5.27 per litre from RM4.92.

The ministry attributed the price surge to escalating geopolitical conflict in West Asia as the regional confrontation reached its 200th day, severely disrupting global energy supply lines and pushing Brent crude oil prices near US$110 per barrel.

“Iran had attacked 10 vessels near the Strait of Hormuz in retaliation for US attacks on five Iranian tankers, while attacks also extended to Yemen and Saudi Arabia’s energy infrastructure,” the ministry said. “Vessel traffic through the Strait of Hormuz had fallen to single-digit levels following the surge in attacks, while drone attacks forced the temporary suspension of operations along Saudi Arabia’s East-West Pipeline.”

MOF added that ongoing refining capacity disruptions in Russia and tighter global crude supplies continue to constrain refined petroleum product output, maintaining elevated refining margins globally.

Despite the market volatility, the government reaffirmed that eligible citizens will remain insulated through targeted BUDI MADANI fuel subsidies. Under BUDI95, eligible recipients will continue to pay RM1.99 per litre for RON95 petrol, with the government absorbing a subsidy of RM2.38 per litre (54 per cent of the market price). Under BUDI Diesel, consumers will pay RM2.10 per litre, supported by a government subsidy of RM3.17 per litre (60 per cent of the market price).

The basic monthly eligibility cap under both BUDI schemes remains at 300 litres, with eligible owners of diesel-powered pickup trucks and jeeps receiving an extended quota of 400 litres. MOF emphasized that the MADANI Government will maintain a prudent approach to protect households from global price shocks while safeguarding national fuel security.

–NMT