Many Malaysians check fuel prices every Wednesday evening and ask the same question — why petrol price changes weekly?

The truth is simple: Malaysia uses a fuel pricing system that follows global oil prices, exchange rates, and government policies. Because of this mechanism, petrol price changes weekly instead of staying fixed for months.

Let’s break it down in simple human language so anyone can understand it.

Malaysia follows something called the Automatic Pricing Mechanism (APM). Under this system:

• Fuel prices are reviewed every week
• Global crude oil prices are considered
• USD to MYR exchange rate matters
• Operating and distribution costs are included

Because these factors change constantly, petrol price changes weekly.

For official explanation breakdown:
Read more: https://malaysiaprice.com/petrol-price/why-petrol-price-changes/

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1️⃣ Global Crude Oil Prices

The biggest reason petrol price changes weekly is global oil market fluctuation.

Crude oil prices depend on:

• OPEC production decisions
• Global demand
• Geopolitical tensions
• Wars and supply disruptions
• Economic growth trends

If crude oil prices increase internationally, Malaysia’s petrol cost increases too.

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2️⃣ Currency Exchange Rate (USD vs MYR)

Oil is traded globally in US Dollars.

If the Malaysian Ringgit weakens against the USD:

• Import cost becomes higher
• Petrol production cost increases
• Fuel price may rise

Even if oil price stays stable, exchange rate changes can cause petrol price changes weekly.

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3️⃣ Government Subsidy Policy

In Malaysia:

• RON95 is subsidized
• RON97 is not subsidized
• Diesel has partial control

That’s why RON97 changes every week based on market price, while RON95 may remain stable due to government support.

For latest petrol updates:
Read more: https://malaysiaprice.com/petrol-price/malaysia-petrol-price-today/

And specifically for RON95:
Read more: https://malaysiaprice.com/petrol-price/malaysia-ron95-price-today/

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4️⃣ Automatic Pricing Mechanism (APM) Formula

The APM formula includes:

• Mean of refined fuel prices (MOPS)
• Exchange rate
• Operational cost
• Dealer commission
• Government tax

Every Wednesday, the calculation is reviewed. On Thursday, new prices are announced.

That’s why petrol price changes weekly like clockwork.

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5️⃣ Supply and Demand Dynamics

When global demand increases (like during holiday seasons or economic recovery):

• Oil demand increases
• Prices rise

When global recession happens:

• Demand drops
• Prices fall

Malaysia adjusts accordingly under APM.

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Why Not Fix Petrol Price Monthly?

Some people ask: why not change monthly instead of weekly?

Weekly changes help:

✔ Prevent sudden large increases
✔ Reflect real-time market condition
✔ Avoid massive subsidy burden
✔ Maintain transparency

Small weekly adjustments are better than sudden big jumps.

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How Diesel Pricing Works

Diesel pricing also follows similar global trends, but sometimes government intervention stabilizes it.

You can check diesel updates here:
Read more: https://malaysiaprice.com/petrol-price/malaysia-diesel-price-today/

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Real-Life Example

Let’s say:

• Global oil price rises by 10%
• Ringgit weakens by 3%

The combined effect increases fuel cost. So next week, petrol price increases slightly.

Then if oil price drops next week, price reduces again.

This cycle explains why petrol price changes weekly.

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Is Weekly Change Good or Bad?

Advantages

✔ Transparent pricing
✔ Market-based adjustment
✔ Less long-term distortion
✔ Sustainable fiscal policy

Disadvantages

❌ Uncertainty for consumers
❌ Budget planning difficulty
❌ Emotional reaction to small increases

But overall, weekly pricing prevents extreme shocks.

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Does Petrol Price Affect Cost of Living?

Absolutely.

When petrol increases:

• Transportation cost rises
• Food delivery cost increases
• Goods become expensive
• Inflation rises

That’s why RON95 is often subsidized to protect middle-income groups.

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Final Thoughts

So now you understand clearly why petrol price changes weekly in Malaysia.

The main reasons are:

• Global oil market fluctuation
• Exchange rate changes
• Automatic Pricing Mechanism
• Government subsidy adjustments

The system is designed to reflect real market conditions while balancing economic stability.

Even though petrol price changes weekly, it prevents sudden dramatic price shocks in the long term.

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FAQs