KUALA LUMPUR, March 27 — Fuel prices across South-east Asia are edging higher, with variations among Asean member states reflecting differing subsidy frameworks, taxation structures, and exposure to global oil markets.

The trend comes amid geopolitical tensions in West Asia, which have tightened global supply, pushed benchmark crude prices above US$100 (RM400) per barrel, and disrupted key shipping routes, particularly through the Strait of Hormuz.

These developments are beginning to test the resilience of domestic fuel pricing systems across Asean, highlighting a widening divide between subsidy-driven markets and those that are more directly exposed to international price fluctuations.

Against this backdrop, Malaysia continues to offer some of the lowest retail fuel prices in the region, supported by long-standing subsidies aimed at shielding consumers from global price volatility.

Subsidised RON95 petrol remains at RM1.99 per litre, keeping the country among the cheapest fuel markets in the region despite rising global crude prices.

Yesterday, Prime Minister Datuk Seri Anwar Ibrahim announced a temporary adjustment to the quota for the Budi Madani RON95 (BUDI95) programme from 300 litres to 200 litres per month, effective April 1.

However, the subsidised RON95 price will remain unchanged, keeping fuel prices relatively low for consumers.

In Indonesia, subsidised fuel is priced in the range of Rp12,000 to Rp12,390 (RM2.91-RM2.93) per litre, underscoring Jakarta’s continued reliance on fiscal support to stabilise domestic energy costs.

However, analysts caution that such subsidy-heavy approaches could place increasing strain on government finances if elevated global oil prices persist over a prolonged period.

In neighbouring Singapore, petrol prices remain the highest in Asean, hovering around US$3.42 (RM10.64) per litre, largely driven by high taxes and policies aimed at discouraging private vehicle ownership.

Acting Transport Minister Jeffrey Siow said fuel supply levels remain stable for now, with stockpiles intact, although authorities continue to monitor the situation closely for any need to intervene.

Meanwhile, Thailand, Vietnam and the Philippines fall within a middle band, where fuel prices are more closely aligned with international benchmarks and adjusted periodically.

In Thailand, fuel prices rose by six baht (RM0.73) per litre from March 26 following a reduction in subsidies, with Gasohol 95 at 41.05 baht (RM5.00) per litre, Gasohol 91 at 40.68 baht (RM4.96) and Diesel B7 at 38.94 baht (RM4.75).

Vietnam’s state-managed pricing mechanism has helped moderate volatility through periodic revisions, although recent increases have tracked global trends.

In contrast, the Philippines’ fully deregulated fuel market sees weekly price adjustments, leaving consumers more directly exposed to international oil price fluctuations.

Cambodia and Laos remain among the more vulnerable markets, with petrol prices exceeding US$1.10 (RM4.41) per litre due to their heavy reliance on imported refined petroleum products.

Limited domestic refining capacity leaves both countries particularly exposed to external supply disruptions and currency pressures, contributing to sustained price pressures in Cambodia’s fuel market.

Fuel prices remain elevated in Cambodia this week, largely driven by volatile energy markets that continue to push up international crude oil prices.

Diesel prices, in particular, have surged sharply, jumping more than 80 per cent since the West Asia conflict erupted in late February.

Cambodia’s Commerce Ministry on Wednesday announced sharp increases in fuel prices, with diesel rising to 7,100 riel (RM7.10) per litre from 3,750 riel (RM3.80) in late February, while regular petrol climbed to 5,450 riel (RM5.50) per litre from 3,800 riel (RM3.81) previously. 

Liquefied petroleum gas is currently priced at 3,200 riel (US$0.79/RM3.20) per litre, according to the ministry’s statement.

Export-dependent Cambodia relies heavily on imported fuel to power its economy, with volatile fuel prices driving up the cost of living.

As global uncertainties persist, the region’s contrasting fuel pricing strategies are likely to come under closer scrutiny, particularly in balancing fiscal sustainability with the need to cushion consumers against further cost pressures. — Bernama