Unsubsidised petrol, diesel prices in Malaysia fall for first time in 4 weeks

Prices for unsubsidised fuel in Malaysia dropped for the first time in four weeks on Thursday (Oct 1).

Announcing the adjusted petrol and diesel prices for the period from Oct 1 to 7, the finance ministry said retail prices for unsubsidised Ron95 and Ron97 will fall by 5 sen per litre, while the price of unsubsidised diesel will decrease by 15 sen per litre.

It attributed the downward adjustments to the recovery of petroleum flow through the Strait of Hormuz, which it said has helped reduce pressure on the price of crude oil and refined petroleum products.

Malaysia uses the APM formula — introduced in 1983 to stabilise fuel prices in line with market fluctuations — when determining weekly petrol prices.

Following the latest round of pricing, the new prices for unsubsidised Ron95, Ron97, and diesel are RM4.52 (S$1.42), RM5.00 and RM5.27 per litre, respectively.

However, the ministry also warned that the unpredictable geopolitical situation is expected to continue affecting the price of petroleum products in the short term.

The new front-month December Brent crude futures contract traded at US$100.71 per barrel at 5.55pm (Singapore time) on Thursday, rising 2.68 per cent from Wednesday. 

This came after China announced on Thursday that it would suspend exports of oil products to regions beyond Hong Kong and Macau until further notice from Beijing. 

Meanwhile, investors remain wary as US-Iran talks aimed at ending the war have yet to achieve significant breakthroughs. 

Pump prices are also rising across the Causeway in Singapore, with major fuel companies in the city state having raised petrol prices for three consecutive days.

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