PUTRAJAYA: About 18 million Malaysian drivers and motorcyclists, including youth as young as 16 and gig workers, are set to benefit from a new targeted fuel subsidy that will see RON95 petrol priced at just RM1.99 per litre.
Prime Minister Datuk Seri Anwar Ibrahim said the long-anticipated plan would be implemented soon, with full details to be revealed by the end of September.
“The government’s commitment has never wavered in ensuring that public subsidies go to those who truly need them. Ordinary Malaysians will continue to benefit, but leakage to ineligible groups, including foreign nationals, must stop.”
Under the new system, only Malaysian citizens will qualify for the subsidised RON95 rate, verified via MyKad. Foreigners will be required to pay the full market price.
Anwar said the current blanket subsidy model is no longer sustainable, with the government spending nearly RM20 billion annually on RON95 alone.
“Although global oil prices have fallen, the unsubsidised price of RON95 is still around RM2.50 per litre.”
He said the RM1.99 price is still heavily subsidised and represents a major commitment by the government despite the improved fiscal outlook.
In 2023, RM20 billion was spent to keep fuel prices manageable. The same amount was allocated in 2024.
Addressing concerns about rising utility costs, Anwar said claims of increased electricity bills are inaccurate.
He said in fact, 85% of domestic users are now paying less than before, thanks to lower energy generation costs.
“Although the tariff has changed, bills have gone down, some by as much as 14% compared with the first half of the year.”
Anwar slammed critics for spreading misinformation, saying the reality is that Malaysians are seeing real savings.
He acknowledged that broad subsidies were necessary in the past, especially during periods of high national debt and low government revenue.
“I apologise for the delay in implementing reforms. But we had to make tough calls on water, electricity, and fuel to stabilise the economy first.”
He said now that conditions have improved, reforms can move forward.
Anwar also announced that toll rate hikes scheduled for this year on 10 highways would be postponed, despite the increases being part of long-standing concession agreements.
“According to projections, tolls were supposed to go up this year.”
The government will fork out over RM500 million in compensation to maintain the current toll rates.
The selected highways include the Senai-Desaru Expressway, East Coast Expressway Phase 2, South Klang Valley Expressway, Butterworth Outer Ring Road and KL-Putrajaya Expressway.
