Malaysia fuel prices rise 35 sen amid West Asian tensions

The Malaysian Ministry of Finance has announced a 35 sen per litre increase for RON97, unsubsidised RON95, and unsubsidised diesel for the period of September 17 to 23. Specifically, RON97 rises to RM4.85, unsubsidised RON95 to RM4.37, and unsubsidised diesel to RM5.27.

The price hike is attributed to heightened geopolitical tensions in West Asia, where conflict has reached its 200th day. Reported incidents include Iranian attacks on 10 vessels near the Strait of Hormuz in response to US actions against Iranian tankers, as well as attacks on energy infrastructure in Saudi Arabia and Yemen. These disruptions have caused vessel traffic in the Strait of Hormuz to drop to single-digit levels and forced the temporary suspension of operations on Saudi Arabia’s East-West Pipeline.

Global oil markets have reacted to these developments, with Brent crude prices rising above US$100 per barrel and reaching nearly US$110 during the Automatic Pricing Mechanism calculation period. Additionally, refining capacity disruptions in Russia and crude oil supply constraints continue to exert upward pressure on global petroleum prices. The government stated it will continue to protect citizens and businesses through targeted subsidies.