SHAH ALAM - The retail price of diesel in Peninsular Malaysia has climbed above RM6 per litre for the period of April 2 to April 8, reflecting ongoing pressures from the prolonged global energy crisis.
According to the Finance Ministry (MoF), the price has increased by 50 sen from RM5.52 previously to RM6.02 per litre, following a surge in global Brent crude oil prices of more than 40 per cent, which has pushed prices above US$100 per barrel.
“More critically, the prices of refined oil for petrol and diesel have also surged significantly to US$150 per barrel and US$250 per barrel respectively, putting pressure on the retail selling prices of both products.
“Despite the increase in diesel prices, the retail price for RON97 has decreased by two sen to RM4.95 per litre, while the unsubsidised price of RON95 remains unchanged at RM3.87 per litre.
“The government continues to maintain targeted subsidised prices for the public and certain sectors such as RON95 (BUDI95) at RM1.99, diesel in Sabah, Sarawak and Labuan (RM2.15), the Subsidised Petrol Control System (RM2.05) and the Subsidised Diesel Control System (RM2.15) per litre,” MoF said in a statement.
The government has also adjusted the BUDI95 eligibility limit to 200 litres per month and introduced purchase limits on diesel in Sabah, Sarawak and Labuan to curb leakages and smuggling activities.
For light vehicles used in public land transport, goods and private purposes, purchases are limited to 50 litres per transaction.
Public land transport and goods vehicles not exceeding three tonnes are allowed up to 100 litres per transaction, while vehicles exceeding three tonnes are permitted up to 150 litres per transaction.
As an interim measure, the government is evaluating medium- and long-term strategies to ensure the subsidy mechanism remains sustainable, transparent and beneficial to the public, while taking into account developments in the global energy crisis and its implications on the energy market.
“The government is committed to ensuring that the public does not fully bear the impact of rising global oil prices.
“Since the Middle East crisis erupted, the government has not fully floated the retail pump price and continues to absorb part of the petrol and diesel subsidy costs for three consecutive weeks,” MoF said.
The ministry added that efforts to maintain subsidised petroleum prices for the public and key sectors will continue to be strengthened to curb the rise in the cost of goods and protect public well-being.