Targeted petrol RON95 subsidy to be implemented by mid-2025

Prime Minister Anwar Ibrahim said the targeted subsidy for RON 95 petrol will be implemented mid-next year.

He said the savings made by the government would continue to be used for the betterment of the people.

Furthermore, he also said it could not denied that foreigners and the upper 15% of the super-rich are enjoying the current 40% subsidy for the RON95 fuel.

"The government plans to implement a targeted subsidy for RON 95 petrol in the middle of 2023. The savings from this would be channelled for the people's wellbeing, including for education amenities, healthcare and public transport," he said in the tabling of the 2025 Budget in Parliament today.

Under the new system, 85% of Malaysians within certain income groups will still benefit from subsidized fuel prices. This targeted subsidy system intends to provide aid to low-income households and ensure that the benefits of government subsidies are distributed more fairly.