By Usha Muthusamy
PUTRAJAYA, 23 July 2025: Prime Minister Datuk Seri Anwar Ibrahim today announced a reduction in the price of RON95 petrol to RM1.99 per litre for eligible Malaysians, under a new targeted fuel subsidy mechanism. This move aims to ensure that subsidies primarily benefit citizens and address concerns over the cost of living.
The government plans to roll out the full details of this targeted subsidy by the end of September 2025. Once implemented, the lower price of RON95 will be exclusively for Malaysian citizens using their MyKad, while foreign nationals and the ultra-rich will be required to pay the unsubsidized market price, currently around RM2.50 per litre.
This initiative is expected to benefit approximately 18 million car drivers and motorcyclists, including youths as young as 16 and gig economy workers. Anwar highlighted that the government currently spends nearly RM20 billion annually on RON95 subsidies, a figure he described as unsustainable due to significant leakages to ineligible groups. The new approach aligns with the government’s efforts to optimize national resources and curb subsidy wastage.
