KUALA LUMPUR (April 1): The pump price of diesel in Peninsular Malaysia is set to hit a new record high of RM6.02 per litre starting Thursday (April 2), jumping 50 sen from the previous week. The retail price of RON97, however, will drop 20 sen to RM4.95 per litre.

This marks the fourth consecutive week of aggressive price hikes for diesel since March 11, leaping RM2.90 in total from RM3.12 per litre, while RON97 is seeing its first reprieve after three straight weeks of increases that saw the fuel price jump RM1.90 from RM3.25 per litre to its recent peak of RM5.15.

The Ministry of Finance (MOF) said in a statement on Wednesday that these adjustments for the week of April 2-8 come as refined diesel hits a critical high of US$250 per barrel, while refined petrol trades around US$150 per barrel following Brent crude's surge past the US$100 per barrel mark. 

The sustained volatility follows the war in Iran, which the International Energy Agency said has triggered the "largest supply disruption in the history of the global oil market", pushing Malaysian retail prices into unchartered territory. 

The diesel price for Sabah, Sarawak and Labuan, however, will remain unchanged at RM2.15 per litre, according to the MOF. Also remaining unchanged is unsubsidised RON95 petrol at RM3.87 per litre.

The subsidised price of RON95 under the Budi95 initiative also stays at RM1.99 per litre, though the standard monthly quota for the average Malaysian has, effective this month, been reduced to 200 litres per month from 300 litres previously.

The government will also maintain the subsidy for diesel at RM300 throughout April despite the latest diesel price hike. The cash aid, to disbursed from April 8, comprises a base RM200 base assistance and an interim RM100 top-up. It is eligible for recipients under the Budi Individu and Budi Agri-Komoditi categories, involving about 340,000 people.

“Beyond this interim measure, the government is considering medium- and long-term measures to ensure the subsidy mechanism remains sustainable, transparent and beneficial to the rakyat, taking into account developments in the global energy crisis and their implications for the energy market,” the ministry said.

The government remains committed to ensuring that the people do not bear the full brunt of rising global oil prices, it assured.

"Since the outbreak of the Middle East crisis, the government has not fully floated retail pump prices; instead, it has continued to absorb a portion of petrol and diesel subsidy costs for three consecutive weeks. Consequently, efforts to maintain subsidised petroleum prices for the public and specific sectors will be further strengthened to curb rising commodity prices and protect the well-being of the people," the statement read.