Prime Minister Datuk Seri Anwar Ibrahim announced today that the RON95 petrol will be priced at RM1.99 per litre under the new fuel subsidy rationalisation programme. He clarified that the new targeted RON95 subsidy plan is still on track, with full details of the mechanism set to be officially announced by the end of September 2025.
In a nationwide announcement, he stated that the new targeted subsidy is expected to benefit around 18 million Malaysians, particularly youths and gig workers. Today’s announcement comes just days after Communications Minister Datuk Fahmi Fadzil confirmed the postponement of the fuel subsidy rationalisation, originally slated to begin in June 2025, to allow for further “fine-tuning.”
The Prime Minister added that this targeted approach is in line with the Government’s efforts to optimise national resources and reduce subsidy wastage. He noted that in 2023 and 2024, the RON95 subsidy alone cost the government almost RM20 billion per year.
This change is also part of the government’s broader subsidy rationalisation efforts, similar to the recent amendments to electricity tariffs. Those changes, which were enforced in July 2025, resulted in a reduction in electricity bills for 85% of domestic users, he said.
RELATED: RON95 fuel subsidy rationalisation delayed for “fine-tuning”
While the new price for RON95 has been announced, the Prime Minister did not reveal the specific details of the implementation mechanism. Previously, the government had announced that the subsidy mechanism would see a new income category introduced, dubbed ‘T15’.
This plan would exclude the top 15% of earners from fuel subsidies, while the remaining 85% of the population would continue to enjoy the new subsidised price for RON95 petrol.
For those who are not eligible for subsidies, including foreigners and the “ultra rich”, they will have to pay the market price for RON95. Currently, the unsubsidised price for RON95 petrol hovers around RM2.62 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
