Malaysia fuel prices rise sharply as subsidies withdrawn

Petrol prices at Malaysian pumps have jumped significantly following the removal of fuel subsidies on unsubsidised grades. RON97 petrol and RON95 petrol without government support have both risen by 20 sen per litre, while diesel has increased by 15 sen per litre under the new pricing structure.

The price adjustments are in effect from today until September 30, marking another upward movement in Malaysia's fuel costs. The increases affect motorists and commercial operators reliant on these fuel grades, which comprise a substantial portion of the market.

These price movements reflect global crude oil market fluctuations and the government's ongoing policy of gradually reducing fuel subsidies for non-subsidised grades. The differential pricing between subsidised and unsubsidised fuel continues to incentivise consumers to utilise the government-supported RON95 petrol option where available.

Industry observers note that fuel price volatility remains a key concern for businesses dependent on transportation and logistics, with the increases potentially flowing through to consumer costs across various sectors in the coming weeks.