KUALA LUMPUR (Aug 19): Retail prices for unsubsidised fuels will increase by up to 20 sen per litre in the upcoming week starting Aug 20, tracking higher global crude oil prices amid prolonged global geopolitical instability that continues to heighten risks to global crude oil prices and supply, the Ministry of Finance announced on Wednesday.

The price of unsubsidised RON95 will rise by 15 sen to RM3.77 per litre, while RON97 will increase by 10 sen to RM4.25 per litre. Unsubsidised diesel will go up by 20 sen to RM4.67 per litre, the ministry said in a statement.

Subsidised fuel prices remain unchanged, with RON95 under Budi95 at RM1.99 per litre and diesel under Budi Diesel at RM2.10 per litre. This means the government bears a subsidy of RM1.78 per litre (47% of the latest market price) for eligible RON95 users, and RM2.57 per litre (55% of the market price) for eligible diesel users.

The ministry said traffic constraints in the Strait of Hormuz continue to disrupt crude supply 172 days into the conflict involving the US, Israel and Iran, with no resolution yet reached.

The Russia-Ukraine conflict has also added pressure to global petroleum supplies, after Ukraine attacked an oil refinery in Russia — the world's third-largest oil producer — during the latest Automatic Pricing Mechanism calculation period, the ministry noted.

The ministry warned that petroleum prices are expected to remain volatile as long as the Middle East conflict remains unresolved and shipments through the Strait of Hormuz do not return to normal.