KUALA LUMPUR, July 22 — Escalating geopolitical risks in West Asia have pushed up prices of unsubsidised petrol and diesel for the period from tomorrow to July 29, said the Finance Ministry (MOF).
In a statement today, it said that based on the Automatic Pricing Mechanism (APM) formula, the unsubsidised RON97 and RON95 are up 20 sen per litre to RM4.20 and RM3.62 per litre respectively, while unsubsidised diesel is up 35 sen to RM4.42 per litre.
“Unsubsidised petroleum product prices were influenced by global oil market movements over the preceding week, with Brent crude oil prices rising 16 per cent following the escalation of conflict between the United States and Iran after the ceasefire period ended.
“Restrictions on shipping and reduced vessel traffic through the Strait of Hormuz have heightened concerns regarding disruptions to global petroleum supplies,” it added.
MOF said the rise in crude oil prices was also driven by dwindling global inventory levels and the threat of disruptions to oil shipments from Saudi Arabia.
“The global petroleum market is expected to remain volatile until a resolution to the conflict is finalised.
“Although efforts to revive negotiations and ceasefire proposals have somewhat curbed the price surge, these developments have yet to alleviate market concerns regarding the risk of supply disruptions,” it said.
It also said although the country has enough fuel for now, the public should continue practising prudent fuel consumption.
“Planning journeys more efficiently and reducing unnecessary travel can help extend national supplies and alleviate pressure on subsidy expenditure,” the ministry said.
MOF added that the government would continue to protect the public from price fluctuations, while ensuring the country’s fuel supply is adequate and secure.
