Fuel prices are up because petrol prices at the pump are determined on the monthly average of refined oil prices, and not crude oil, the BN Strategic Communications Team said.

"While global oil prices had increased in recent months due to an agreement to cut production by oil producing countries - which also benefits Malaysia, the price of refined oil products have increased further due to other reasons," it added.

This, it said, include refineries shutting down around the world due to fires and major maintenance, leading to decreased supply and increased margins and pricing for refineries.

The communications team was responding to opposition leaders such as PKR president Dr Wan Azizah Wan Ismail, who said the fuel price hike which came into effect today was unjustified.