Cover image via Berita Harian
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Prime Minister Datuk Seri Anwar Ibrahim, in a televised address today, 23 July, announced that the price of RON95 will be lowered by 6 sen to RM1.99 per litre
Anwar stated that the government's long-awaited plan to implement targeted subsidies for RON95 petrol will be rolled out by the end of September 2025.
Once the targeted subsidy mechanism takes effect, Anwar said that RON95 will cost just RM1.99 per litre for citizens, a decrease from the current subsidised price of RM2.05 per litre.
Anwar, in his Budget Mid-Year Review speech, said the move aims to ensure that only eligible Malaysians continue to enjoy subsidised fuel, similar to the targeted electricity subsidy introduced earlier.
"Let me assure everyone — ordinary Malaysians will not be affected. In fact, I'm happy to announce that the price of RON95 will be lowered for Malaysians," he said.
This change is expected to benefit around 18 million Malaysians, including car owners, motorcyclists, gig workers, and youths aged 16 and above.
However, foreigners will pay market price
Under the new framework, non-citizens will no longer enjoy subsidised fuel.
Foreign nationals in Malaysia will have to pay the full market price of RON95 petrol.
According to Anwar, the government currently spends nearly RM20 billion annually on RON95 subsidies, a figure he says is unsustainable, especially when a significant portion goes to people who may not need the aid.
Even with global oil prices declining this year, the unsubsidised market rate for RON95 remains at around RM2.50 per litre, nearly 25% more than what Malaysians currently pay at the pump.
"This targeted approach is part of our effort to optimise national resources for the rakyat's benefit and curb unnecessary wastage," Anwar added.
