KUALA LUMPUR, June 17 — The retail price of diesel in Peninsular Malaysia has been reduced by 30 sen to RM4.37 per litre for the week of June 18–24, following a decline in international market prices, the Finance Ministry said in a statement today.

The ministry said the adjustment was made under the Automatic Pricing Mechanism (APM) and reflected average movement of international market prices in the previous week, noting that easing tensions in West Asia had helped moderate global crude oil prices compared to recent peaks.

However, it cautioned that several short‑term risks could limit further price declines, including uncertainty over the reopening of trade routes in the Strait of Hormuz, supply disruptions that may take months to normalise, and the possibility that ongoing peace negotiations may not reach a final settlement.

Despite the latest reduction, the government’s subsidy burden remains high, with current market‑based projections estimating monthly spending at around RM3.5 billion. Of this, subsidies for RON95 petrol are expected to account for RM2 billion a month, while diesel subsidies make up roughly RM1.5 billion.

The ministry said the Madani government would continue to safeguard public welfare and support key sectors through targeted assistance while managing fiscal spending prudently amid volatile global conditions. It also urged the public to use fuel more efficiently, to help preserve national fuel reserves and ease subsidy pressures.

For the June 18–24 period, retail prices are as follows:

RON97: RM4.35 per litre (unchanged)

RON95: RM3.72 per litre (unchanged)

Diesel (Peninsular Malaysia): RM4.37 per litre (down 30 sen)

Subsidised fuel prices remain unchanged, including RM1.99 per litre for RON95 under BUDI95, RM2.15 per litre for diesel in Sabah, Sarawak and Labuan, and RM2.05–RM2.15 per litre under the SKPS and SKDS schemes.

The ministry said more than 14 million eligible recipients continue to benefit from the BUDI95 programme. At the current unsubsidised RON95 price of RM3.72 per litre, 200 litres of usage would cost RM744, but the government absorbs up to RM346 per recipient each month, capping their out‑of‑pocket cost at RM398.

Diesel without subsidy is now priced at RM4.37 per litre, more than double the subsidised rate of RM2.15, a gap the ministry said reflects efforts to cushion the impact of diesel prices on public transport and logistics.