Malaysia will raise the retail prices for unsubsidised petrol and diesel from August 20, with increases ranging from 10 to 20 sen per litre. Unsubsidised RON95 petrol will rise by 15 sen to RM3.77 per litre, RON97 petrol by 10 sen to RM4.25 per litre, and diesel by 20 sen to RM4.67 per litre [1, 2, 3, 4].
The prices for subsidised fuels will remain unchanged. BUDI95 RON95 will continue to be sold at RM1.99 per litre, and BUDI Diesel at RM2.10 per litre [1, 2, 3, 4]. The government subsidy stands at RM1.78 per litre for BUDI95—covering 47% of the unsubsidised price—and RM2.57 for BUDI Diesel, equivalent to 55% of its unsubsidised price [1, 2, 3, 4].
Fuel price adjustments come amid ongoing disruptions to crude oil supplies. The conflict involving the US, Israel, and Iran has restricted shipments through the Strait of Hormuz for 172 days, significantly impacting global petroleum flows [1, 2, 3]. Additionally, the Russia-Ukraine conflict has contributed to supply pressures, including an attack on a Russian oil refinery by Ukraine during the Automatic Pricing Mechanism period [1, 2, 3].
The Ministry of Finance said the Madani government remains committed to shielding people and businesses from the effects of the global crisis but urged continued fuel conservation. Officials advised Malaysians to plan more efficient journeys and reduce unnecessary travel to ease demand on the country’s fuel supply and subsidy costs [2, 3].
Petroleum prices are expected to stay volatile while the Middle East conflict persists and normal shipments through the Strait of Hormuz have yet to resume [1, 2, 3].
The new unsubsidised fuel prices will take effect nationwide starting August 20 [1, 2, 3, 4].
