The implementation of the RON95 fuel subsidy rationalisation, which was originally slated to begin in June 2025, has been postponed, according to a report by the Malay Mail.
Communications Minister Datuk Fahmi Fadzil confirmed the delay, explaining that the subsidy rationalisation requires further fine-tuning. He added that the Prime Minister and Finance Minister, Datuk Seri Anwar Ibrahim, has stressed that he does not want the subsidy rationalisation to burden most Malaysians.
The Minister elaborated at a press conference in Parliament today, “The prime minister expressed his view that he does not want the implementation of any policy to negatively affect the majority of the people. It is this process of fine-tuning that has resulted in a slight shift in the timeline,” he said.
This statement aligns with comments made earlier this month by Second Finance Minister Datuk Seri Amir Hamzah Azizan, who said the government was still finalising the details of the RON95 subsidy rationalisation.
RELATED: MPs urge government to delay implementation of RON95 subsidy rationalisation
Previously, the Second Finance Minister announced that the MyKad (IC) will play an important part in determining eligibility for the RON95 subsidy, and said that the final mechanism is still being fine-tuned.
The postponement also comes after the opposition urged the government to delay the implementation of the fuel subsidy rationalisation, citing the uncertain economic situation and ongoing tariff issues as key concerns.
When the fuel subsidy rationalisation does come into effect, it is expected to save the government around RM8 billion in subsidies – at least according to prior estimations based on the previously-announced mechanism.
That mechanism will see a new income category introduced, dubbed ‘T15’, which comprises the top 15% of earners who will not be eligible for fuel subsidies. The remaining 85% of the population, which includes the entire B40 and M40 groups as well as a portion of the T20, will still be able to enjoy subsidised RON95 petrol.
The price of RON95 petrol without subsidies currently hovers at RM2.83 per litre, based on fuel prices published by Double Petrol, a non-subsidised petrol station in Perlis.
ALSO READ: Dashcams could soon be mandatory in buses, lorries, and public transport vehicles in Malaysia
