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Image source: paultan.org
KUALA LUMPUR, 23 July 2025
Prime Minister Datuk Seri Anwar Ibrahim has announced that the price of RON95 petrol will be reduced to RM1.99 per litre for Malaysian citizens under the upcoming targeted subsidy rationalisation programme, which is scheduled for implementation by end-September 2025.
This initiative is set to benefit approximately 18 million Malaysians, including youth, gig economy workers, and low- to middle-income households. Subsidised rates will only be available through MyKad verification at petrol stations, ensuring the subsidy is limited to eligible citizens.
Meanwhile, foreigners and the top 15% income group (T15)—considered high-income earners—will have to pay market rates for RON95, which currently range between RM2.50 to RM2.83 per litre.
The move is part of the government’s ongoing effort to improve subsidy efficiency, reduce fiscal leakages, and redirect savings towards more impactful, targeted assistance. Anwar stated that this decision aligns with the administration’s broader commitment to economic reform and cost-of-living management, echoing the strategy previously applied to electricity subsidies.
Originally planned for mid-2025, the rollout of the RON95 rationalisation was postponed to allow fine-tuning of the delivery mechanism, with the aim of ensuring a smooth transition and minimal disruption to daily life.
The programme is designed to reduce subsidy leakages, manage government spending, and provide more efficient support to low- and middle-income groups.
The full mechanism and implementation details will be revealed in September 2025.
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