PETALING JAYA: Malaysians will soon pay less at the pump. From Sept 30, the price of RON95 petrol drops from RM2.05 to RM1.99 per litre – a rare move in today’s uncertain economy.
Prime Minister Datuk Seri Anwar Ibrahim said the cut comes under the government’s Budi Madani RON95 subsidy scheme, designed to ease household costs while keeping public funds in check.
“This policy is possible due to improved efficiency, better revenue collection and the reduction of leakages such as through smuggling and tax evasion, ensuring greater benefits are returned to the people,” Anwar said during the Prime Minister’s Department’s monthly assembly with staff.
Budi Madani RON95 applies only to Malaysian citizens.
“Foreigners and large companies are not eligible and will pay RM2.60 per litre.
“Citizens need only present a valid MyKad and driving licence to enjoy the subsidy, with no further registration required,” Anwar said, adding that the rollout will be staggered to avoid congestion.
Police and military personnel get first dibs on Sept 27, followed by B40 households and selected M40 recipients of the Sumbangan Tunai Rahmah (STR) scheme on Sept 28. From Sept 30, the subsidy opens to the wider public – 16 million Malaysians aged 16 and above with a MyKad and valid driving licence.
The government has also set a monthly eligibility ceiling of 300 litres for all citizens. However, e-hailing drivers are exempted from this limit and may apply for higher allocations according to their needs.
Foreign-registered vehicles, meanwhile, are only allowed to fill up with RON97, while foreigners using locally registered plate numbers can purchase RON95 at the unsubsidised price of RM2.60, as the subsidy is reserved for Malaysians with a valid driving licence.
For recipients of Sumbangan Asas Rahmah (Sara), verification for Budi Madani RON95 will also be linked to MyKad.
Anwar highlighted Malaysia’s competitive fuel prices internationally, noting that even among oil-producing nations, the country maintains some of the lowest fuel costs.
“We are the only country in the world bold enough to lower petrol prices amid an uncertain economy,” he said, citing comparison with Saudi Arabia where subsidies amount to RM0.50 per litre making the current price there RM2.61 per litre.
Among neighbouring countries, he said, Malaysia remains one of the cheapest, with only Brunei slightly lower.
Anwar framed the subsidy within the government’s broader Madani vision of civil society, which emphasises effective governance at all levels.
He acknowledged that initial implementation may face minor challenges, but these will be addressed to improve subsequent trials.
Beyond easing household expenses, the subsidy will free up funds for rebuilding essential infrastructure affected by floods, including roads, clinics, schools and educational institutions.
“After the implementation, the RON95 price may rise slightly, but the benefits will go directly to the people, particularly for infrastructure development.
“For example, in Sabah, the floods caused extensive damage to roads, slopes, clinics, schools and more. The funds will help address these challenges while we continue focusing on education, healthcare and basic infrastructure.”
Anwar added that savings from the switch will also be redistributed to citizens through social assistance programmes such as the STR and Sara.
