Fuel prices in Malaysia fell for the second consecutive week following three straight weeks of hikes, the Finance Ministry announced on Wednesday (Aug 12) night.

For the period between Aug 13 and 19, retail prices for unsubsidised Ron95 and Ron97 petrol have been reduced by 15 sen and 20 sen respectively, while the posted price for unsubsidised diesel fell by 10 sen.

Following the latest round of pricing, the new prices for unsubsidised Ron95, Ron97, and diesel are RM3.62 (S$1.13), RM4.15 and RM4.47 per litre respectively.

Malaysia uses the automatic pricing mechanism (APM) formula — introduced in 1983 to stabilise prices based on market fluctuations — when determining weekly petrol prices.

Explaining its decision, the ministry pointed out that hopes of a resolution to the conflict between the US and Iran caused world oil prices to trade at lower levels for most of last week.

It noted that brent crude oil prices fell below US$80 per barrel at the start of the APM calculation period — the lowest in three weeks. 

But the ministry also cautioned that uncertainties remain, highlighting that geopolitical risk premiums rose again towards the end of the APM calculation period last week as prospects between the two countries deteriorated again.

In addition, brent oil prices rose by almost 5 per cent on Monday as concerns over the reopening of the Strait of Hormuz resurfaced. 

The ministry said: "Uncertainty over the reopening of the Strait of Hormuz continued to pose risks of disruption to world oil supplies, thus putting pressure on petroleum prices. 

"Therefore, the price of petroleum products is expected to continue to fluctuate significantly in the near future." 

It also urged motorists to remain prudent in their fuel consumption and to continue reducing unnecessary travel. 

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editor@asiaone.com