Malaysia Holds Fuel Prices Amid U.S.-Iran Conflict

The Ministry of Finance of Malaysia announced that retail fuel prices in Peninsular Malaysia will remain unchanged from July 9 to July 15. Unsubsidised RON97 is set at RM4.00 per litre, unsubsidised RON95 at RM3.37 per litre, and unsubsidised diesel at RM3.97 per litre. Subsidised rates for RON95 and diesel under the BUDI schemes remain at RM1.99 and RM2.10 per litre, respectively.

This decision follows two weeks of price reductions attributed to moderating global crude oil prices, restored supply flows, and reduced geopolitical risk premiums. However, the market faced renewed instability after the United States launched military strikes against Iran on July 7. These strikes followed allegations that Tehran attacked three commercial vessels in the Strait of Hormuz.

Geopolitical tensions escalated further when President Donald Trump declared the interim agreement with Iran is over. This development contributed to a nearly six percent surge in oil prices, which climbed over US$78 a barrel on Wednesday. The ministry warned that disruptions in critical trade routes like the Strait of Hormuz could trigger significant future price fluctuations. In response to the global uncertainty, the government urged citizens to reduce unnecessary travel to conserve national fuel reserves.