Fuel Price Hike Due to Global Tensions

Global geopolitical tensions have led to an increase in unsubsidized fuel prices in Malaysia. As of tomorrow, August 20, prices will rise by 10-20 sen per liter until August 26 due to global crude oil price and supply disruptions.

The Finance Ministry (MOF) has announced that RON97 will cost 10 sen more at RM4.25 per liter, while unsubsidized RON95 will rise by 15 sen to RM3.77 per liter. Unsubsidized diesel will increase by 20 sen to RM4.67 per liter.

However, subsidized fuel prices remain unchanged, with BUDI95 at RM1.99 per liter and BUDI Diesel at RM2.10 per liter. The government continues to bear a significant subsidy for these fuels, with BUDI95 receiving a subsidy of RM1.78 per liter (47% of the unsubsidized RON95 price) and BUDI Diesel receiving a subsidy of RM2.57 per liter (55% of the unsubsidized diesel price).

The MOF attributed the price increase to the ongoing conflict between the United States, Israel, and Iran, as well as the Russia-Ukraine conflict, which has disrupted global petroleum supplies.