KUALA LUMPUR: The retail prices of RON97 petrol, RON95 without subsidy and diesel in Peninsular Malaysia have each recorded a decrease for the period from June 4 to 10.
The Ministry of Finance (MOF) in a statement today announced that the retail price of RON97 has dropped by 30 sen, from RM4.65 to RM4.35 per litre, while RON95 without subsidy has dropped by 20 sen from RM3.92 to RM3.72 per litre.
Diesel prices in Peninsular Malaysia are set at RM4.67 per litre compared to RM4.87 per litre previously, a decrease of 20 sen.
According to MOF, the new retail price adjustment is in line with the Automatic Price Mechanism (APM) formula for this week which was lowered following the decline in average international market prices the previous week.
During the same period, the MADANI government maintained subsidized prices targeted at the people and certain sectors, including RON95 (BUDI95) at RM1.99 per litre, diesel in Sabah, Sarawak and Labuan at RM2.15 per litre, the Subsidized Petrol Control System (SKPS) at RM2.05 per litre and the Subsidized Diesel Control System (SKDS) at RM2.15 per litre.
According to the statement, at the current unsubsidized price of RON95 of RM3.72 per litre, using 200 litres will cost RM744.
“This means that the MADANI Government will bear up to RM346 for each recipient who uses the full BUDI95 entitlement. However, with a monthly entitlement ceiling of up to 200 litres, BUDI95 recipients will only pay up to RM398 per month for full use of the entitlement.
“The price of non-subsidized diesel of RM4.67 per litre is more than double the price of subsidized diesel of RM2.15 per litre, to reduce the impact of diesel prices on the people through the cost of public transportation and logistics of consumer goods,” the statement said.
MOF informed that the decline in retail prices this week did not reflect the global petroleum market returning to stability, but rather the risk that crude oil and petroleum product prices would remain high in the medium term due to the conflict and current developments in West Asia.
“Recently, major importing countries in Asia have been forced to increase their purchases of crude oil from alternative sources to compensate for supply disruptions from West Asia. Although crude oil imports from the United States to Asia have increased to record levels, the increase is still not enough to replace the loss of supply through the affected main trade routes.
“This situation shows that the global petroleum market is still facing physical supply constraints, despite the average market price in the previous week recording a decline. If the conflict continues, the risk of global inventory depletion and supply shortages could put new pressure on crude oil and petroleum product prices in the coming period,” said the MOF.
In this regard, the MADANI Government calls on the people to continue to practice prudent fuel use to help ensure the security of the country’s supply.
— BERNAMA
