KUALA LUMPUR, Aug 12 — The retail prices of non-subsidised petroleum products for the period from tomorrow to Wednesday (August 19) see a drop, with RON97 down by 20 sen per litre, unsubsidised RON95 dropping by 15 sen, and unsubsidised diesel dropping by 10 sen.
The Ministry of Finance (MOF) said that for the period, the price of RON97 is set at RM4.15 per litre, down from RM4.35 previously, while unsubsidised RON95 is priced at RM3.62 per litre, down from RM3.77, and unsubsidised diesel is set at RM4.47 per litre, down from RM4.57 previously.
At the same time, subsidised petroleum prices remain unchanged at RM1.99 per litre for RON95 under BUDI MADANI RON95 and RM2.10 per litre for diesel under BUDI MADANI Diesel.
It added that the MADANI government shoulders a subsidy of RM1.63 per litre for eligible users under BUDI95, equivalent to about 82 per cent of the RM1.99 per litre price paid at the pump, while for BUDI Diesel, a subsidy of RM2.37 per litre is borne, equivalent to about 113 percent of the RM2.10 per litre price paid at the pump.
Prices for the Subsidised Petrol Control System (SKPS) and Subsidised Diesel Control System (SKDS) remain at RM2.05 and RM2.15 per litre, respectively.
Meanwhile, the MOF noted that the price drop follows last week's fall in global oil prices, when hopes for a resolution to the conflict between the United States and Iran caused prices to trade at lower levels for most of the week.
Brent crude oil prices also dropped below US$80 a barrel at the beginning of the Automatic Pricing Mechanism price calculation period, marking the lowest level in three weeks.
"However, geopolitical risk premiums rose again toward the end of the APM calculation period as prospects for negotiations between the United States and Iran deteriorated following new demands put forward by both parties," it said in a statement.
Brent prices rose by nearly five per cent on Monday as concerns over the reopening of the Strait of Hormuz peaked again.
"Uncertainty regarding the reopening of the Strait of Hormuz continues to pose risks of global oil supply disruptions, thereby placing pressure on petroleum prices.
"Consequently, petroleum product prices are expected to continue experiencing significant fluctuations in the near future," the MOF said.
