KUALA LUMPUR (June 24): The retail fuel prices for the period from June 25 to June 30 will be lowered across the board, with RON97 falling by 25 sen to RM4.10 per litre, unsubsidised RON95 declining by 25 sen to RM3.47 per litre and diesel in Peninsular Malaysia dropping by 30 sen to RM4.07 per litre.
The Ministry of Finance (MOF) said in a statement on Wednesday that the reductions were in line with the Automatic Pricing Mechanism (APM) formula, reflecting lower average international fuel prices in the previous week amid easing crude oil prices and more positive developments in the West Asia conflict.
Brent crude futures have retreated sharply from recent highs above US$80 a barrel, trading at the mid-to-lower US$70s per barrel range on Tuesday after a ceasefire between Hezbollah in Lebanon and Israel eased concerns over potential supply disruptions in the Middle East.
MOF said global petroleum markets nevertheless remain exposed to medium-term uncertainties, including the risk that peace negotiations may fail to reach a lasting resolution, prolonged supply chain recovery, and inventory levels and logistics costs that have yet to fully return to pre-conflict levels.
The US and Iran signed a Memorandum of Understanding on June 17, which launched a 60-day negotiation process towards a permanent agreement, with discussions expected to focus on Iran's nuclear programme, sanctions relief and regional security issues.
"In this environment, the Madani government remains committed to protecting the rakyat from fluctuations in market prices through targeted subsidies, while enhancing long-term energy security through strategic partnerships with international counterparts, including Turkmenistan and Russia," the MOF said.
Subsidised fuel prices remain unchanged, with RON95 under the Budi95 programme maintained at RM1.99 per litre, while subsidised diesel prices in Sabah, Sarawak and Labuan remain at RM2.15 per litre.
The ministry also reiterated that the Budi Madani Diesel programme will be implemented nationwide from July 1, allowing eligible private diesel vehicle owners to purchase subsidised diesel at RM2.10 per litre using their MyKad.
MOF said diesel subsidies for strategic and critical sectors, including fishermen, smallholders, the commodities sector and public land transport operators, will continue to be maintained.
The ministry added that Malaysia's fuel supply remains sufficient, while the government will continue to balance cost-of-living considerations with fiscal prudence and supply security.
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