How did the government set the weekly diesel and petrol prices?

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The government set weekly diesel and petrol prices using the Automatic Pricing Mechanism (APM) formula, with changes tied to global oil market prices
The government set the weekly retail prices of diesel and petrol using the Automatic Pricing Mechanism (APM) formula. It applied the APM to weekly retail pricing of petroleum products, resulting in RON97 rising by seven sen per litre from RM3.07 to RM3.14 for June 19 to 25, while RON95 stayed at RM2.05 per litre. For the same period, diesel in Peninsular Malaysia rose by seven sen per litre from RM2.74 to RM2.81, while diesel in Sabah, Sarawak and Labuan remained at RM2.15 per litre.
Prices were fixed for the weekly period of June 19 to 25
The Ministry of Finance stated that the new retail prices apply from June 19 to 25. During this period, RON97 increased from RM3.07 to RM3.14 per litre, while RON95 remained unchanged at RM2.05 per litre. Diesel pricing also followed the same weekly window, with different rates for Peninsular Malaysia versus Sabah, Sarawak and Labuan.
The Automatic Pricing Mechanism (APM) formula was used to set weekly retail prices
The Ministry of Finance said the prices were set based on weekly retail pricing of petroleum products using the APM formula. This means the government used the APM framework to determine the weekly retail levels for petrol and diesel rather than setting them on a one-off basis. The outcome of applying that weekly APM process was reflected in the seven-sen-per-litre changes for RON97 and Peninsular Malaysia diesel.
The changes were linked to increases in global oil market prices
The government tied the weekly price setting to movements in global oil market prices. It stated that, in line with the increase in global oil market prices, RON97 was set at RM3.14 per litre and diesel in Peninsular Malaysia at RM2.81 per litre for the June 19 to 25 period. The statement also referenced that Peninsular Malaysia diesel remained lower than the floated price of RM3.35 per litre on June 10, 2024.
The government said it would monitor global crude oil price impacts
After setting the weekly retail prices, the government said it would continue to monitor the impact of changes in global crude oil prices. It also said it would take appropriate measures to safeguard the welfare and well-being of the people. In the June 19 to 25 pricing, this monitoring stance accompanied the APM-based weekly adjustments.

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How did the government set the weekly diesel and petrol prices?

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