Malaysia Raises Unsubsidized Fuel Prices 60-80 Sen

Malaysia's government has raised the prices of unsubsidized RON95 and RON97 petrol by 60 sen per liter and unsubsidized diesel by 80 sen per liter, effective immediately, in response to a sharp global surge in crude oil prices triggered by escalating conflict in the Middle East. The adjustment, announced on Friday, March 13, aims to manage fiscal pressures while preserving subsidized rates for eligible domestic consumers.

The price hikes come amid heightened tensions following U.S. and Israeli airstrikes on Iran on February 28, which prompted Tehran to close the Strait of Hormuz, a critical chokepoint for about one-fifth of the world's oil supply. Brent crude prices jumped 63 percent to a peak of nearly US$120 per barrel on Monday before stabilizing around US$100 per barrel later in the week, influenced by reports of de-escalation efforts and the planned release of 400 million barrels from global strategic reserves by the International Energy Agency.

To shield local consumers and businesses from the volatility, the government is committing approximately RM3.2 billion monthly to sustain subsidized fuel prices in the short term, a more than fourfold increase from the previous...