Malaysia has lowered the prices of unsubsidised petrol and diesel for the week of Oct. 1 to 7, providing some relief after several weeks of increases linked to global oil market pressures and the conflict in the Middle East.
RON97 petrol and unsubsidised RON95 each fell by 5 sen per litre, while unsubsidised diesel dropped by 15 sen. The new prices are RM5.00 per litre for RON97, RM4.52 for unsubsidised RON95 and RM5.27 for unsubsidised diesel.
The reductions mark the first decline in Malaysia’s unsubsidised petrol and diesel prices in four weeks. The Finance Ministry said the adjustment was based on the Automatic Pricing Mechanism, which links weekly retail prices to movements in global petroleum markets.
The ministry attributed the latest decrease to moderating crude oil prices during the calculation period, following the resumption of operations along Saudi Arabia’s East-West pipeline. Supplies of refined petroleum products in Asia have also shown signs of recovery, helping ease some pressure on regional fuel prices.
However, the government warned that the improvement could prove temporary. Global petroleum markets remain vulnerable to geopolitical developments, particularly while the conflict between the United States and Iran remains unresolved.
Any renewed attacks or disruptions in the Middle East could push crude oil and refined petroleum prices higher again. Supply conditions also remain uneven, with disruptions affecting refining capacity in other parts of the world.
Malaysia’s targeted fuel subsidies continue to shield eligible consumers from much of the movement in global prices. Malaysians covered by BUDI95 continue to pay RM1.99 per litre for RON95, compared with the unsubsidised price of RM4.52.
Eligible BUDI Diesel recipients continue to pay RM2.10 per litre, while the market price for unsubsidised diesel is RM5.27. The government said it is covering RM2.53 per litre of the RON95 price and RM3.17 per litre of the diesel price under the current subsidy arrangements.
The latest reduction follows a period of sharp volatility. In mid-September, RON97, unsubsidised RON95 and unsubsidised diesel each rose by 35 sen per litre as escalating tensions in West Asia disrupted energy supplies and pushed Brent crude above US$100 a barrel.
With the latest adjustment, motorists paying market prices will see a modest reduction at the pump, while subsidised users remain protected at their existing rates. Authorities are continuing to monitor international oil prices, refinery output and geopolitical developments that could influence Malaysia’s next weekly fuel-price decision.
For now, the Oct. 1 to 7 reduction offers a brief easing in fuel costs, but the government continues to warn that uncertainty in global energy markets could quickly reverse the trend.
