Targeted RON95 subsidies and lower oil prices led to RM1.2 billion in savings, with the MyKad verification system operating smoothly at stations.
KUALA LUMPUR: The government’s rationalisation of RON95 fuel subsidies generated savings of approximately RM1.2 billion in the final quarter of 2025.
According to a written parliamentary reply from the Ministry of Finance, RON95 subsidies totalled RM3 billion in the fourth quarter of 2024 before declining to RM1.8 billion in the same period of 2025.
The ministry attributed the savings to the implementation of targeted subsidies through the BUDI95 initiative and a concurrent decline in global oil market prices.
It stated that the savings were achieved by reducing subsidy leakages, including purchases by non-citizens and cross-border smuggling activities.
“The government appreciates the concern shown by members of the public who have provided information regarding attempts to misuse the RON95 subsidy, which also helps ensure that the subsidy is enjoyed by eligible Malaysian citizens,” the ministry said.
The reply was in response to a question from Senator Tan Sri Low Kian Chuan regarding the total savings from the subsidy rationalisation and projected figures for 2026.
In a separate response to Senator Abdul Nasir Idris, the ministry said the MyKad verification system at petrol stations is operating stably and smoothly.
It reported that no major issues, such as long waiting times or queues, have been encountered by users seeking subsidised fuel.
“The effectiveness of using MyKad is also supported by the experience from other government assistance programmes, particularly Sumbangan Asas Rahmah (SARA), which recorded a 99% usage rate and also uses the MyKad verification mechanism,” the ministry added.
