Malaysia raises prices for unsubsidised Ron95, 97 and diesel from May 21

Citing continued pressure on global crude oil and petroleum product prices due to the ongoing Middle East conflict — now in its 11th week — Malaysia on Wednesday (May 20) hiked retail prices of unsubsidised Ron95 petrol and diesel from May 21 to 27.

For the period between May 21 and 27, the posted prices for unsubsidised Ron95 and Ron97 have increased by 20 cents — to RM4.07 (S$1.30); and 15 cents — to RM4.85, respectively.

The price of diesel also rose by 10 cents to RM4.97 per litre. 

In a statement, the Ministry of Finance noted that Brent oil prices were at US$110 per barrel — almost 60 per cent higher than the pre-conflict level of about US$70 per barrel.

The ministry pointed out that logistics costs and insurance premiums have also increased significantly due to the risk of shipping through conflict zones, thus putting further pressure on petroleum product prices.

Malaysia uses the automatic pricing mechanism formula — introduced in 1983 to stabilise the price of petrol and diesel based on market fluctuations — when determining weekly petrol prices.

While the price of subsidised Ron95 petrol is maintained at RM1.99, the government also urged Malaysians to practise prudent fuel consumption to help extend the country's supply.

"Daily travel planning can help use fuel more efficiently," the ministry said.

On May 4, Malaysia Prime Minister Anwar Ibrahim said the government is spending about RM5 billion a month to offer fuel subsidies to its citizens, cautioning that the subsidy bill could exceed RM6 billion a month if fuel prices continue to rise.

Earlier this week, PM Anwar was granted an audience with Malaysia's King Sultan Ibrahim amid talks of snap polls.

This follows growing tension within the ruling alliance and to synchronise the vote with several state polls expected in the coming months.

A general election in Malaysia costs about RM1 billion to hold, according to the Election Commission's estimate for the 2022 national vote — or just under what the country now burns in less than a week for fuel subsidies.

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