Malaysia to Increase Prices of Unsubsidised Fuel from May 21-27

Malaysians will face higher fuel costs from May 21 to May 27, as the retail prices of unsubsidised RON95 petrol and diesel are set to rise. This adjustment, based on the Automatic Pricing Mechanism, reflects global market trends and will see RON97 increase by 15 cents, RON95 by 20 cents, and diesel by 10 cents per litre. While these unsubsidised prices climb, the government has reaffirmed its commitment to protecting consumers by maintaining targeted subsidies for RON95 and diesel, keeping them at significantly lower rates.

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the retail price of RON97 would be set at RM4.85 per litre compared with RM4.70 previously, while unsubsidised RON95 would rise to RM4.07 per litre from RM3.87 previously.

The Finance Ministry's statement highlights the ongoing effort to balance market realities with the need for affordability. The price adjustments for unsubsidised fuel are a necessary step in managing the nation's resources, but the continued provision of subsidies for RON95 and diesel demonstrates a clear focus on easing the burden on ordinary citizens and essential sectors. This dual approach aims to ensure that while market forces influence some prices, the impact on the general populace is mitigated.

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the price of diesel in Peninsular Malaysia will meanwhile be set at RM4.97 per litre compared with RM4.87 previously.

Furthermore, the government has urged the public to practice fuel conservation. This call for prudent usage is not just about individual savings but is crucial for safeguarding the nation's fuel supply stability. In a region where energy security is a constant consideration, responsible consumption by all Malaysians plays a vital role in maintaining equilibrium and preventing undue strain on national reserves. The Straits Times, as a leading voice in Singapore, reports these developments, providing regional context on economic shifts affecting our neighbours.

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price adjustments are based on the Automatic Pricing Mechanism formula, which takes into account the average price of the previous week.