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Fuel prices in Malaysia to remain unchanged till June 17; subsidies hit high of RM7.5b in April

Finance Ministry says international petroleum market remains uncertain, urging motorists to remain prudent in fuel consumption
Fuel prices in Malaysia to remain unchanged till June 17; subsidies hit high of RM7.5b in April
Pump prices in Malaysia will remain unchanged for the week of June 11 to June 17.
PHOTO: AsiaOne/Joel Lee

Fuel prices in Malaysia will remain unchanged between June 11 and June 17, following two consecutive weeks of reductions, Ministry of Finance said on Wednesday (June 10).

For this period, the retail prices for unsubsidised Ron95, Ron97 and diesel will remain at RM3.72 (S$1.20), RM4.35, and RM4.67, respectively.

Explaining its decision, the ministry pointed out that Brent prices have moderated at around US$90 per barrel, down from US$120.

However, it also cautioned that while the global petroleum market has shown "a more stable trend" in recent weeks, it is still influenced by uncertainties in physical supply, global inventory levels and seasonal demand in several major regions of the world.

Nonetheless, the ministry reassured Malaysians that the country's petroleum supply remains "stable and sufficient", with planning in place to ensure continuity for the foreseeable future.

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.

Pump prices in Malaysia effective June 11.

Subsidy liability

Giving an update, the ministry said the monthly subsidy for both Ron95 and diesel climbed from around RM700 million in January to about RM 7.5 billion in April.

Despite the moderation in global oil prices, the ministry expects its subsidy liability to remain high at around RM3.5 billion. 

It noted that the subsidy had helped reduce cost pressures on public transport and logistics movement of consumer goods, thereby cushioning the impact of the ongoing Middle East crisis.

Motorists are encouraged to maintain efficient and prudent fuel consumption through better travel planning to reduce wasteful consumption, the ministry said.

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editor@asiaone.com 

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