Petrol prices in Malaysia update every Wednesday. Here’s this week’s petrol prices, plus everything else you need to know about fuelling up. And keep checking back, because this page will keep updating with the weekly fuel price.
What is the petrol price in Malaysia this week?
Latest petrol price for RON95, RON97 and diesel
October 19 to October 25
How are petrol prices calculated?
Ever wonder who comes up with these fuel prices? Well, the government determines petrol prices through the Automatic Pricing Mechanism (APM) formula:
Here’s what each of those terms mean:
- Product cost: Price of the refined petroleum product, which is based on a benchmark called Mean of Platts Singapore (MOPS). The MOPS is used by many ASEAN countries.
- Alpha: The difference between the MOPS price and the actual price that oil companies pay for the petroleum product. It acts as a buffer to help offset volatility in global oil prices.
- Marketing cost: Includes costs incurred in head offices and depots, but doesn’t include advertising, sales promotion and public relations.
- Distribution cost: Includes costs incurred when transporting the product.
- Dealer’s commission: The commission earned by petrol station operators.
- Company profits: The oil company’s income for buying and selling APM products.
Some of these costs are fixed. Here’s a breakdown of how they make up your retail pump price:
|RON95 and RON97
|Tax or subsidy*
|Retail pump price
|Total of all costs above
|Total of all costs above
Source: Affin Hwang Capital
However, the government currently maintains the ceiling price of RON95 at RM2.05 per litre and diesel at RM2.15 per litre, even though the APM prices for RON95 and diesel have increased beyond the ceiling prices.
In the recent tabling of Budget 2024, the government has started to roll back petrol subsidies. The government approach to retargeting subsidy starts with the rationalisation of diesel prices.
Subsidies for diesel currently amount to over RM1.5 billion per month. In Budget 2024, the diesel subsidy will be kept for selected users such as freight transport. This is to minimise the domino effect of the price increase being passed on to the end user and consumers in the price of goods. For everyone else, expect to see an increase in diesel prices.
Read More: Highlights Of Malaysia Madani Budget 2024
What affects the price of petrol?
So what affects the price of the petroleum product, before all the extra costs are tacked on? There are many factors in the market that can affect petroleum prices, including:
- Price of crude oil. According to Caltex, the cost of crude oil contributes to almost half the retail price of petroleum.
- Supply and demand for crude oil. Prices for crude oil are driven by supply and demand. Supply shortages can use prices to rise, while prices can fall if supply exceeds demand.
- Supply disruptions. Much of the world’s oil supply is located in politically unstable regions. When conflicts happen, the supply of oil could be disrupted, causing the price of oil to rise.
- Foreign exchange rate. Malaysia is a big exporter of high-quality crude oil, but it also imports a lot of low-grade oil for domestic use. A change in foreign exchange rates could make oil more expensive to purchase, and therefore increase the price of petrol.
What is the difference between RON95 or RON97?
On paper, RON97 is more expensive than RON95 and considered to be of higher quality. But is it better for your engine and does it enhance the performance of your car as compared to RON95?
Not necessarily. We’ve debunked some of the myths about RON97’s performance here.
We’ve also conducted a “dyno” test a while back to put this belief to the test. Our test vehicle – a stock Myvi 1.5 – was placed in a controlled environment, to limit the number of variables such as different road conditions, traffic and driving styles.
What we found is that it only matters if your car has been optimised for a certain type of fuel. For example, in our test, we discovered that the Myvi 1.5 we used had been optimised for RON95 fuel usage.
This applied vice versa. If someone drove a RON97-optimised auto, such as the Suzuki Swift Sport, using RON95 would likely cause that car to perform less efficiently.
But the point is this: unless your car’s engine requires RON97, there’s really no point in spending more on premium fuel as it does not really give you an added performance advantage.
What petrol should your vehicle use?
Naturally, the next question is: how do you know which petrol your car’s engine is optimised for?
Generally, RON97 is used in cars with higher engine capacities (cc). But the best way to find out is to check your owner’s manual – this will tell you the minimum RON your engine is compatible with.
Can you mix petrol brands?
Mixing petrol brands won’t harm your engine. You can even mix RON95 and RON97, if your car is compatible with both grades. Just stay away from mixing petrol and diesel, as that can damage your engine.
What is the difference between petrol and diesel?
Petrol and diesel are both produced from oil, but are refined differently. This results in a different combustion process in your car’s engine.
What does this mean for your driving experience, exactly?
On the surface, diesel is slightly more expensive than RON95. But it’s more fuel efficient than petrol, which could make it more cost-effective in the long run. Diesel engines also produce more torque (that’s the force that helps a vehicle tow, move something heavy or drive up steep elevations).
On the downside, diesel engines tend to be noisy and rattly. Diesel engines also typically produce more toxic emissions than petrol engines, but newer diesel engines that are built with better standards have lower emissions. Nevertheless, some countries like Singapore are planning on banning the sale of diesel cars.
How can you save money on petrol?
With petrol prices fluctuating faster than your weight, it’s time to be proactive in other ways to save petrol. Here are easy ways for you to shave off some of your petrol costs:
1. Do not leave your engine idling
A US government fact sheet claims that idling uses up to half a gallon (that’s 3.785 litres) of petrol per hour. That means burning about 0.315 litres of petrol for every five minutes of idling. Assuming your car has a fuel efficiency of 22km per litre of petrol, five minutes of idling could mean the equivalent of travelling around 6.93km.
So the next time you are waiting for someone, turn your engine off. Leaving your engine idle does not only waste petrol, it is also releasing unnecessary harmful emissions. So, be kind to your wallet and the environment by reducing idling when you can.
2. Pump up your tyres
How often do you check the inflation of your tyres? It is not only dangerous to drive with tyres that are under-inflated, it can also affect your vehicle’s fuel efficiency. Under-inflated tyres waste more petrol because they create too much traction, and thus need more petrol to get them going. But over-inflating your tyres can be dangerous too, as you’ll make them more vulnerable to damage.
3. Get your car serviced
Research suggests that fuel economy can be sustained through proper vehicle maintenance. Even if your vehicle is old, it won’t affect your fuel efficiency if you care for your vehicle well.
If you can’t remember when you last serviced your vehicle, it’s time to book an appointment with the workshop now. Set a reminder on your phone to ensure you never miss your service appointment again.
4. Plan your journeys
Make use of free GPS apps such as Waze and Google Maps when you are driving. Using GPS will help you plan your journeys effectively, so you won’t make a wrong turn and waste precious fuel. Learn the route to the destination before starting your journey to avoid getting lost and being stuck in traffic. Circling round and round looking for your destination can make a huge difference to your petrol consumption, so it’s worth planning your route before you leave home.
5. Use petrol loyalty card
Every sen saved is a sen earned, which is why arming yourself with the right petrol brand loyalty card can help you maximise your petrol dollars. The best way to find the best petrol brand loyalty card that gives you the most is to, first of all, find a petrol brand that you regularly pump from. For example, a petrol brand with the nearest station to your home or workplace. Then you can narrow it down to how much you need to spend to earn points and what is the value of the points. Petrol loyalty cards such as the Petron Miles card also gives you additional discounts and privileges from other merchants.
6. Drive a manual transmissions vehicle
According to Budget Direct, manual transmissions save drivers between 5% and 15% on their fuel costs. The reason for this is because manual transmission engines tend to be less complex, weigh less (weight savings = fuel savings), and have more gears than automatics (which lets you optimise on fuel savings). Although there are exceptions to the rule, manual cars do help you save fuel and they also tend to be cheaper than their automatic counterparts, and require less maintenance, which will save you money in the long run.
7. Drive a fuel-efficient car
There are lots of things that can make a car more fuel efficient, including its aerodynamics (that is, how well its design reduces air friction), its engine type, as well as its size and weight. For more information, check out our article on the top ten most fuel-efficient cars in Malaysia.
8. Use the best petrol credit card
If you spend a lot on petrol, it’s time to get yourself the right credit card to cut your fuel cost every month. The best petrol credit card should give you good cashback or rewards points on your petrol spending at the petrol brand that you purchase from.