KUALA LUMPUR (Sept 2): Retail fuel prices for unsubsidised fuels have been reduced by five sen for the Sept 3-9 period, the Finance Ministry said in its weekly update.

The unsubsidised price of RON97 will drop to RM4.25, RON95 to RM3.77 and diesel to RM4.67.

Subsidised fuel prices remain unchanged at RM1.99 per litre for RON95 under Budi95 and RM2.10 per litre for diesel under Budi Diesel. 

Diesel prices in Sabah, Sarawak and Labuan will also stay at RM2.15 per litre. Prices under the Subsidised Petrol Control System (SKPS) and Subsidised Diesel Control System (SKDS) are maintained at RM2.05 per litre and RM2.15 per litre respectively.

The ministry said the lower prices reflected softer global crude oil prices for most of the Automatic Pricing Mechanism (APM) pricing period, although prices rose towards the end of the period amid heightened geopolitical tensions in West Asia. 

However, it added that the refined petroleum products market remains constrained despite Brent crude prices moderating from their peak during the conflict. 

The ministry said disrupted petroleum flows through the Strait of Hormuz, reduced refining capacity in several countries and fuel export restrictions were expected to contribute to price volatility in the near term. 

Recently, the government had increased the monthly quota for Budi95 and Budi Diesel to 300 litres from Sept 1. Eligible owners of diesel pickup trucks and four-wheel-drive vehicles received an additional 100 litres, bringing their monthly quota to 400 litres. 

“China has begun to ease export restrictions on refined petroleum products, which were introduced in March 2026. Although exports have since increased from July, supplies of some petroleum products to regional markets have not yet fully returned to pre-conflict levels,” said the ministry in its statement.