RON97 and Unsubsidised RON95 Down 5 Sen, Diesel Drops 15 Sen From Oct 1

KUALA LUMPUR, Sept 30 (Bernama) -- The retail prices of RON97 and unsubsidised RON95 petrol will decrease by 5 sen per litre respectively, while unsubsidised diesel will drop by 15 sen per litre for the period of Oct 1 to 7.

The Ministry of Finance (MOF), in a statement today, said that the new price for RON97 is fixed at RM5 per litre, unsubsidised RON95 at RM4.52 per litre, and unsubsidised diesel at RM5.27 per litre.

The statement said the drop was driven by moderating average global crude oil prices during the Automatic Pricing Mechanism (APM) calculation period, following the resumption of Saudi Arabia's East-West pipeline operations.

"At the same time, the supply of refined petroleum products in Asia is showing signs of recovery, with China's refined petroleum product exports in September are estimated to exceed four million tonnes, compared to an average of around three million tonnes per month last year.

"This increase in supply helps to reduce part of the pressure on regional petroleum product prices," the statement said.

However, MOF said the recovery of global supply remains uneven, as another major Russian refinery in Perm was forced to halt operations after a Ukrainian drone attack last week, limiting Russian diesel supply to the international market.

Consequently, price volatility for petroleum products is expected to persist as long as the conflict between the United States and Iran remains unresolved.

"Any new attacks in the Middle East risk placing upward pressure on oil and petroleum product prices once again.

"Furthermore, the recovery of global refining capacity remains crucial to easing price pressures in the medium term," the statement read.

MOF also said that the MADANI Government will continue to protect the rakyat and businesses from the impacts of global volatility, including by maintaining targeted subsidies through BUDI MADANI, BUDI Diesel, the Subsidised Petrol Control System (SKPS), and the Subsidised Diesel Control System (SKDS).

At current prices, BUDI MADANI RON95 (BUDI95) recipients pay RM1.99 per litre compared to the unsubsidised RON95 price of RM4.52 per litre, with the government bearing a subsidy of RM2.53 per litre, equivalent to 56 per cent of the unsubsidised price.

"BUDI MADANI Diesel (BUDI Diesel) recipients will continue to pay RM2.10 per litre compared to the unsubsidised diesel price of RM5.27 per litre, with a government subsidy of RM3.17 per litre or 60 per cent of the unsubsidised price," the statement said.