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The ministry of finance has stated that increased petroleum prices are not purely due to increased crude oil prices, as the ongoing conflict in the Middle East has led to heightened risk towards the global petroleum supply chain.
As an example, insurance premiums have increased to 17 times the amount before the conflict, as the Middle East region has been categorised a high-risk zone. Meanwhile, delivery costs have tripled due to the increase in oil prices as well as longer routes due to detours to avoid conflict zones, according to the finance ministry.
This has led cost increases along the entire supply and petroleum refining chain which far exceed the increases in the price of crude oil, which eventually leads to the effect upon retail prices of fuels, it said.
The ministry of finance also reiterated that despite extraordinary conditions worldwide, Malaysian citizens with active driving licences continue to enjoy subsidised RON 95 petrol under the Budi Madani RON 95 scheme (Budi95) at RM1.99 per litre, even though the unsubsidised price of the fuel has nearly doubled since the conflict began.
The ministry added that Budi Diesel cash assistance has been increased to RM400 for the month of April, or double the original amount when Budi Diesel was announced at the end of 2025.
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[[{“value”:”The ministry of finance has stated that increased petroleum prices are not purely due to increased crude oil prices, as the ongoing conflict in the Middle East has led to heightened risk towards the global petroleum supply chain. As an example, insurance premiums have increased to 17 times the amount
The post Fuel price hikes not just due to crude oil price; delivery costs tripled, insurance premiums up to 17x – MoF appeared first on Paul Tan’s Automotive News.”}]] Read More Paul Tan’s Automotive News