KUALA LUMPUR (July 22): The retail price of unsubsidised diesel will rise by 35 sen to RM4.42 per litre for the week starting July 23 while unsubsidised RON95 and RON97 will go up by 20 sen each to RM3.62 and RM4.20, said the Ministry of Finance (MOF).
The price of unsubsidised petroleum products reflects movements in the global oil market during the past week, the ministry said in a statement on Wednesday.
The latest increase marks the second consecutive weekly hike for unsubsidised RON95 and diesel. In the previous pricing cycle for July 16 to July 22, the unsubsidised retail price of RON95 was raised by five sen per litre while unsubsidised diesel increased by 10 sen per litre.
The MOF said Brent crude prices rose 16% over the past week after the conflict between the US and Iran escalated following the end of a ceasefire. At the time of writing on Wednesday, Brent was trading at US$84.78 per barrel.
At the time of writing on Wednesday, Brent was trading at US$93.77 per barrel, according to Bloomberg.
The ministry said restrictions on shipping and reduced vessel traffic through the Strait of Hormuz had raised concerns over disruptions to global petroleum supplies.
Higher crude oil prices were also due to tightening global inventories and concerns over potential disruptions to oil shipments from Saudi Arabia, it added.
The MOF said the global petroleum market is expected to remain volatile until the conflict is resolved. Although efforts to revive negotiations and proposals for a ceasefire have helped limit some of the price increases, concerns over supply disruptions remain.
The ministry said domestic fuel supplies remain sufficient for now but urged the public to use fuel more prudently by planning journeys efficiently and avoiding unnecessary travel to help preserve supplies and reduce pressure on subsidy expenditure.
Subsidised fuel prices remain unchanged, with RON95 under the Budi95 programme priced at RM1.99 per litre and Budi Diesel at RM2.10 per litre.
Prices under the Subsidised Petrol Control System (SKPS) and Subsidised Diesel Control System (SKDS) are also maintained at RM2.05 and RM2.15 per litre.
