KUALA LUMPUR (May 13): Retail prices for RON97, unsubsidised RON95 and diesel in Peninsular Malaysia will decrease for the week of May 14 to May 20, following a downtrend in international market prices, according to the Ministry of Finance (MOF).

The pump price for RON97 will drop by 20 sen to RM4.70 per litre, down from RM4.90 previously. Unsubsidised RON95 will see a 15 sen reduction to RM3.87 per litre from RM4.02, while the retail price of diesel in Peninsular Malaysia will be lowered by 30 sen to RM4.87 per litre from RM5.17.

Despite the downward adjustments, the MOF noted that fuel prices remain significantly higher than levels seen before the conflict in the Middle East. Retail fuel prices are also being impacted by a surge in logistics and insurance costs due to heightened risks in the conflict zones, while the threat of shipping disruptions in the Strait of Hormuz continues to strain global oil supplies.

"Crude oil prices are still hovering around US$100 per barrel, compared to approximately US$60 to US$70 per barrel before the conflict," it said in a statement, while urging the public to continue to be prudent in their fuel consumption to help sustain the nation's supply.

At the time of writing, Brent crude, the global benchmark, was trading at US$107.23 per.

Meanwhile, the government has continued to maintain the targeted fuel subsidies, to cushion the cost of living and support selected sectors amid the ongoing global market uncertainty.

Subsidised RON95 (Budi95) and diesel prices in Sabah, Sarawak and Labuan will remain at RM1.99 per litre, while the subsidised petrol control system (SKPS) and subsidised diesel control system (SKDS) are maintained at RM2.05 and RM2.15 per litre, respectively.

“To balance the cost of living with prudent fiscal management, the Madani government will continue to adopt a measured approach to shield the rakyat from price volatility, while ensuring adequate and secure fuel supply,” the ministry added.