MoF: RON97, unsubsidised RON95 and diesel prices up 20 sen a litre from July 30 to Aug 5

The Ministry of Finance has announced a significant increase in the retail prices of RON97, unsubsidised RON95, and unsubsidised diesel, effective from July 30 to August 5. In a move that will impact consumers and businesses alike, the prices of these petroleum products are set to rise by a substantial 20 sen per litre.

Background & Context

The decision to raise fuel prices comes amidst a tumultuous global oil market, where the ongoing conflict between the United States and Iran has pushed Brent crude oil prices to a six-week high of US$96 per barrel. This development has heightened concerns over global petroleum supply disruptions, with risks to major trade routes, including the Strait of Hormuz and the Red Sea, further exacerbating the situation.

The conflict in the Middle East, which began on February 28, has already had far-reaching consequences, with emergency petroleum reserves in several major economies reportedly depleted. The need for these countries to replenish their strategic reserves could lead to further pressure on petroleum prices in the medium term, making the current price hike a necessary measure to mitigate the impact on the domestic market.

Key Details

The retail price of RON97 will rise to RM4.40 per litre from RM4.20, while unsubsidised RON95 will increase to RM3.82 per litre from RM3.62. The price of unsubsidised diesel will also increase to RM4.62 per litre from RM4.42. The Ministry of Finance stated that the prices of unsubsidised petroleum products are influenced by global oil market movements, and the ongoing conflict in the Middle East is a major factor contributing to the current price hike.

The ministry also emphasized that the increase in fuel prices is not solely due to the conflict in the Middle East but also reflects the current global market conditions. The decision to raise fuel prices is aimed at ensuring that the domestic market remains stable and that the country's economy is not severely impacted by the global crisis.

What Experts Say

Analysts have noted that the price hike is a necessary measure to ensure the stability of the domestic market. "The current price hike is a reflection of the global market conditions, and it's essential to ensure that our economy is not severely impacted by the ongoing conflict in the Middle East," said an analyst. "The Ministry of Finance has taken a prudent approach to mitigate the impact of the global crisis on the domestic market."

Another expert noted that the price hike is also a result of the depletion of emergency petroleum reserves in several major economies. "The need for these countries to replenish their strategic reserves could lead to further pressure on petroleum prices in the medium term, making the current price hike a necessary measure to ensure the stability of the domestic market."

Key Takeaways

• The retail prices of RON97, unsubsidised RON95, and unsubsidised diesel will each increase by 20 sen per litre for the period from July 30 to August 5.
• The Ministry of Finance stated that the prices of unsubsidised petroleum products are influenced by global oil market movements, and the ongoing conflict in the Middle East is a major factor contributing to the current price hike.
• The price hike is aimed at ensuring that the domestic market remains stable and that the country's economy is not severely impacted by the global crisis.
• The decision to raise fuel prices is a necessary measure to mitigate the impact of the global crisis on the domestic market.

What This Means For You

The price hike will undoubtedly impact consumers and businesses alike, with increased costs for fuel, transportation, and other related expenses. To mitigate the impact, it is essential to practice prudent fuel consumption by planning journeys more efficiently and reducing unnecessary travel.

Consumers can also consider using public transportation, carpooling, or using alternative modes of transportation to reduce their reliance on fuel. Businesses can also take steps to reduce their fuel consumption by implementing more efficient logistics and supply chain management practices.

Ultimately, the price hike is a necessary measure to ensure the stability of the domestic market, and it is essential for consumers and businesses to adapt to the new prices and take steps to mitigate the impact on their daily lives.