Malaysia cuts unsubsidized petrol and diesel prices for the week of 22 to 28 October

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Unsubsidized petrol price cut

Highlights

The price of unsubsidized RON95 fell 6.49% to RM4.32 per litre, RON97 dropped 5.88% to RM4.80, and unsubsidized diesel fell 1.93% to RM5.07 per litre.
The price decline was driven by expectations of increased supply from China, even as Brent crude remained elevated at US$108.97 a barrel amid geopolitical risks.
The government kept subsidized RON95 at RM1.99 and subsidized diesel at RM2.10, with subsidies covering 54% and 59% of market prices, respectively, while allocating RM40 billion for fuel subsidies next year.

This article was translated from the original. Read the original version by our correspondent here.

Weekly fuel price adjustments

As reported by The Edge Malaysia, citing the Ministry of Finance, the price of unsubsidized RON95 fell 6.49% to RM4.32 per litre from RM4.62, while unsubsidized RON97 dropped 5.88% to RM4.80 from RM5.10. The price of unsubsidized diesel decreased 1.93% to RM5.07 per litre from RM5.17.

The ministry said prices of refined petroleum products in regional markets began to moderate during the calculation period for the automatic pricing mechanism, even though Brent crude remained above US$100 a barrel. The decline was driven by expectations of increased supply from China, with continued production from other Asian countries providing support.

At the time of writing on Wednesday, Brent crude was trading at US$108.97 a barrel. According to the ministry, persistently high crude oil prices reflect the risk of supply disruptions amid ongoing geopolitical conflicts, and global petroleum prices are expected to remain volatile in the medium term.

Subsidy implications and consumer protection

Subsidized RON95 and diesel prices remained unchanged at RM1.99 and RM2.10 per litre, respectively. At current levels, the government is subsidizing RON95 by RM2.33 per litre, equivalent to 54% of its unsubsidized price, while the diesel subsidy stands at RM2.97 per litre, or 59% of its unsubsidized price.

The ministry said the government would continue to protect the public and businesses from the effects of global uncertainty while ensuring the country's fuel supply remains sufficient and secure. As announced in Budget 2027, the government is expected to spend RM40 billion on fuel subsidies next year to support economic growth and protect the people's well-being.

In our previous coverage of the weekly fuel price adjustments, we explained the reductions in unsubsidized RON95, RON97 and diesel prices for the period from 15 to 21 October, despite Brent remaining above US$100 a barrel. At the time, the government kept subsidized prices at RM1.99 (RON95) and RM2.10 (diesel) and reiterated its forecast of RM40 billion in fuel subsidy spending in 2027, amid the risk of supply disruptions and volatility in global energy markets.

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