KUALA LUMPUR: The retail prices of RON97 petrol, unsubsidised RON95 petrol and unsubsidised diesel will each increase by 35 sen per litre from Sept 17-23, says the Finance Ministry.
In a statement on Wednesday (Sept 16), the ministry said the retail price of RON97 would increase to RM4.85 per litre from RM4.50, while unsubsidised RON95 would rise to RM4.37 from RM4.02 and unsubsidised diesel to RM5.27 from RM4.92.
The ministry said the increase in global fuel prices was driven by heightened tensions in the Middle East amid the conflict, which has entered its 200th day.
"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. Vessel traffic through the Strait of Hormuz had fallen to single-digit levels following the surge in attacks.
"The situation worsened after drone attacks forced the temporary suspension of operations along Saudi Arabia's East-West Pipeline, which is among the key routes bypassing the Strait of Hormuz," the statement said.
The ministry said these developments drove Brent crude oil prices back above US$100 per barrel, reaching nearly US$110 per barrel during the Automatic Pricing Mechanism (APM) calculation period.
At the same time, the ministry said disruptions to refining capacity in Russia and constraints on crude oil supplies continued to limit the production of refined petroleum products, keeping refining margins high and putting upward pressure on global petroleum prices.
According to the ministry, escalating tensions in the Middle East and the Russia-Ukraine conflict could result in prolonged volatility in global petroleum prices.
Meanwhile, the ministry said the Madani government would continue to protect the people and businesses from the impact of global uncertainties, including by maintaining targeted Budi Madani subsidies for eligible consumers.
Under Budi95, eligible recipients will continue to pay RM1.99 per litre for RON95, with the government bearing a subsidy of RM2.38 per litre, or 54% of the unsubsidised price of RM4.37.
For Budi Diesel, recipients will pay RM2.10 per litre, with the government providing a subsidy of RM3.17 per litre, or 60% of the unsubsidised price of RM5.27.
The basic monthly eligibility limit for Budi95 and Budi Diesel was raised again to 300 litres effective Sept 1, while eligible owners of diesel-powered pickup trucks and jeeps would receive an additional 100 litres, bringing their total monthly eligibility to 400 litres, the ministry said.
"The Madani government will continue to take a prudent approach to protect the people from price fluctuations while ensuring the nation's fuel supply remains sufficient and secure," the statement read. – Bernama
