INSAP calls for full disclosure on diesel price calculation as prices hit RM5.52

 

THE Institute of Strategic Analysis and Policy Research (INSAP) has called on the Finance Ministry to disclose the full inputs behind Malaysia’s weekly diesel price calculations as prices hit RM5.52 per litre in Peninsular Malaysia.

While the government maintains that prices are set using the Automatic Pricing Mechanism (APM), the think tank’s chairman Datuk Dr Pamela Yong said key data points—namely the Mean of Platts Singapore (MOPS) gasoil benchmark and the US dollar to ringgit exchange rate—remain undisclosed.

“While the formula is known, the workings are not. This creates an accountability gap that must be addressed,” she said, noting that diesel prices directly impact the cost of goods and services nationwide.

Yong said recent price movements, including a sharp rise over the past three weeks, raise questions that warrant clearer explanation.

“The Finance Ministry should publish, alongside each weekly price announcement, the MOPS gasoil average and the USD/MYR exchange rate used to derive the retail price,” she noted.

“This is standard practice in countries such as Australia, where the Australian Institute of Petroleum publishes MOPS benchmarks weekly.”

She also emphasised the need for transparency in cases where retail prices deviate from the APM formula, whether due to price caps or other adjustments, arguing that Malaysians have a right to know if they are being shielded from higher costs or paying above the calculated rate.

In addition, she proposed an independent review of the APM framework to assess whether it remains suitable amid increasingly volatile global fuel markets.

“Diesel is not an ordinary commodity. It drives logistics, construction and daily economic activity. When prices rise sharply, the impact is felt across every household,” Yong said.

“A government that asks the public to bear these costs must also be prepared to show how they are calculated.” ‒  Focus Malaysia