Malaysia Raises Fuel Prices Again Amid Global Oil Cost Increases
Malaysia raised its unsubsidized fuel prices for the fourth time in five weeks on September 17, citing rising global oil costs. The government announced a 35 sen per liter increase for Ron95, Ron97, and diesel fuel, bringing new prices to RM4.37 (S$1.36), RM4.85, and RM5.27 per liter, respectively.
The price hike follows a previous increase of 25 sen per liter just nine days prior. The Automatic Pricing Mechanism (APM) formula, which stabilizes prices based on market fluctuations, was used to determine the new rates. Brent crude futures rose above US$100 per barrel and approached nearly US$110 during the APM period.
The finance ministry attributed prolonged petroleum price volatility to ongoing Middle East tensions. Disruptions to key oil transport routes and infrastructure have contributed to global supply constraints. The Strait of Hormuz, a critical shipping lane, has seen vessel traffic fall to single-digit levels due to Iranian attacks on shipping and US strikes on Iranian tankers.
Elsewhere, refining capacity in Russia has been disrupted amid its conflict with Ukraine. This situation is expected to contribute to prolonged petroleum price volatility in the coming period.