Post by : Shakul

The Malaysian government has announced a reduction in diesel prices across Peninsular Malaysia following a decline in international crude oil prices. Under the latest pricing revision, diesel will now retail at RM4.37 per litre for the period from June 18 to June 24, representing a decrease of 30 sen from the previous week.

The Finance Ministry said the adjustment was made through the Automatic Pricing Mechanism (APM), which reflects average international fuel market movements. Officials noted that easing geopolitical tensions in West Asia have contributed to lower global crude oil prices after recent highs.

Despite the diesel price reduction, petrol prices remain unchanged. RON97 will continue to be sold at RM4.35 per litre, while RON95 remains at RM3.72 per litre. The government said it would continue monitoring global developments before making further pricing decisions.

Authorities cautioned that several risks could still affect fuel markets in the short term. Uncertainty surrounding shipping routes through the Strait of Hormuz, possible supply disruptions and ongoing diplomatic negotiations in the region may continue to influence oil prices in the coming months.

The government also highlighted the significant cost of maintaining fuel subsidies. Current estimates show that Malaysia spends approximately RM3.5 billion each month on fuel support programmes, including around RM2 billion for RON95 petrol subsidies and RM1.5 billion for diesel assistance.

Subsidised fuel schemes remain unchanged. Eligible motorists under the BUDI95 programme continue to receive RON95 at RM1.99 per litre, while subsidised diesel prices in Sabah, Sarawak and Labuan remain at RM2.15 per litre. The government stated that more than 14 million Malaysians currently benefit from these targeted subsidy programmes.

Officials said the subsidy framework is designed to protect households, public transportation operators and logistics providers from volatile global energy prices. The government also encouraged consumers to use fuel efficiently to help manage national energy resources and reduce pressure on public finances.

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