Fuel prices in Malaysia fall after 2 weeks of hikes amid fluctuations

Fuel prices in Malaysia fell after two consecutive weeks of price hikes on Thursday (Sept 3).

Announcing the adjusted petrol and diesel prices for the period of Sept 3 to 9 on Wednesday night, the finance ministry said retail prices for unsubsidised Ron95, Ron97 and diesel would fall by 5sen per litre.

Prices for the three fuel types were raised by 5 sen in the preceding week.

The ministry attributed the reduction to global crude oil prices trading at lower levels for most of the Automatic Pricing Mechanism (APM) pricing period.

Malaysia uses the APM formula — introduced in 1983 to stabilise prices based on market fluctuations — when determining weekly petrol prices.

However, the ministry also highlighted that prices rebounded towards the end of the period following increased geopolitical tensions in the Middle East, after US President Donald Trump reportedly told mediators that the US had no interest in reviving the June agreement.

Following the latest round of pricing, the new prices for unsubsidised Ron95, Ron97, and diesel are RM3.77 (S$1.19), RM4.25 and RM4.67 per litre, respectively.

The finance ministry also noted that the global refined petroleum products market remains tight owing to disruptions to petroleum flows through the Strait of Hormuz, reduced refining capacity in several countries, and fuel export restrictions.

"These factors are expected to continue to cause price volatility in the near term," it said.

The ministry also reiterated its appeal for motorists to remain prudent in their fuel consumption and avoid unnecessary travel. 

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