KUALA LUMPUR (June 30): Retail fuel prices for the week of July 1 to July 8 have been lowered across the board, with unsubsidised RON95 declining 10 sen to RM3.37 per litre, unsubsidised diesel dropping 10 sen to RM3.97 and RON97 falling 10 sen to RM4.00.

In a statement on Tuesday, the Ministry of Finance (MOF) said the price reductions were in line with the automatic pricing mechanism (APM) formula, following a decline in average international fuel prices in the previous week.

The retail prices for petrol and diesel for this week were announced to align the new pricing with the roll-out of the Budi Madani Diesel programme, starting on July 1.

The MOF attributed the lower retail prices to a moderation in international petroleum prices supported by improving global supply conditions and expectations that negotiations could ease the risk of crude oil supply disruptions.

However, it cautioned that global oil markets have yet to fully stabilise, with risks to crude oil prices, shipping costs and fuel supply remaining until the conflict is fully resolved.

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.

Brent crude oil prices have retreated sharply to near pre-war levels.

Oil prices slipped on Tuesday, and were set for their biggest quarterly loss since the Covid-19 pandemic in early 2020, with investors eyeing potential US-Iran talks in Doha amid a strained interim ceasefire in the four-month-old war, Reuters reported.

Brent August crude futures, which expire on Tuesday, were down 0.41%, or 30 cents, at US$72.85 (RM297.59) a barrel.

The contract was on track for a third straight monthly decline and was down about 21% so far in June,” the report noted.

Meanwhile, subsidised fuel prices remain unchanged at RM1.99 per litre for RON95 under the Budi95 programme, while subsidised diesel prices remain at RM2.10 per litre.

Prices under the Subsidised Petrol Control System (SKPS) and Subsidised Diesel Control System (SKDS) will be maintained at RM2.05 per litre and RM2.15 per litre respectively.

The MOF reiterated that the Budi Madani Diesel programme allows eligible private diesel vehicle owners to purchase subsidised diesel at RM2.10 per litre using their MyKad.

The ministry added that Malaysia's fuel supply remains sufficient, while the government will continue to take a prudent approach to protect the people from price fluctuations.