KUALA LUMPUR: The subsidised price of RON95 petrol under the Budi95 initiative remains at RM1.99 per litre despite global crude oil prices exceeding US$100 per barrel following the conflict in West Asia.
In a statement on Wednesday (March 18), the Finance Ministry said the move was aimed at protecting households, while market fuel prices are being adjusted gradually in line with global increases since late February.
The ministry said that although domestic fuel prices are influenced by international price movements, the government has chosen not to fully pass on the increase to consumers.
It said the government is bearing a subsidy burden exceeding RM3bil per month following the decision to maintain the Budi95 price at RM1.99 per litre for Malaysians, as well as diesel at RM2.15 per litre for public transport and the land goods transport sector.
"The decision to maintain the subsidy is to ensure smooth preparations for the Aidilfitri celebrations,” the statement said.
In line with global fuel price changes under the Automatic Pricing Mechanism (APM), MOF said the retail price of RON97 for March 19 to 25 has increased to RM4.55 per litre, from RM3.85 on March 18.
Diesel prices in Peninsular Malaysia have also risen to RM4.72 per litre from RM3.92, while unsubsidised RON95 and diesel in Sabah, Sarawak and Labuan remain unchanged at RM3.27 and RM2.15 per litre, respectively.
The ministry said the latest increase in global crude oil and petroleum product prices is due to ongoing geopolitical tensions in West Asia and continued supply uncertainties affecting the global energy market.
"Although Malaysia is an oil-producing country, petroleum products for domestic use are still sourced from the global market. Therefore, domestic fuel prices remain influenced by international price movements,” it said.
Meanwhile, the ministry said more than 400,000 vehicles from the public transport and land goods sectors, including express buses, taxis, lorries and trailers, continue to be protected under targeted subsidy schemes such as the Subsidised Diesel Control System (SKDS) and Subsidised Petrol Control System (SKPS).
It added that the government will continue to adopt a prudent and responsible approach in managing domestic fuel prices amid ongoing uncertainties in the global oil market.
"Despite rising global oil prices, fuel prices in Malaysia remain among the lowest in the region due to the government’s efforts to retain part of the subsidies to protect the people and ensure domestic economic stability,” the statement said.- Bernama
