Effective midnight, fuel prices are expected to drop across the board.

According to the Domestic Trade Co-operatives and Consumerism Ministry, RON95 and RON 97 will go down by 10 sen bringing the respective pump prices to RM2.11 and RM2.39 per litre.

Whereas the retail price for diesel will be at RM2.08 per litre following a drop of 6 sen.

Fuel prices are now announced using the new weekly ceiling price system announced by Domestic Trade Co-operatives and Consumerism Minister Hamzah Zainuddin.

Companies that wished to sell below the weekly ceiling price must seek approval from the ministry.

Monthly fuel prices were previously determined based on a managed float system called "Automatic Pricing Mechanism" (APM).

It determines the month's fuel price by factoring the average market value of a particular fuel and the ringgit's strength in the preceding month.