RON95 Petrol Price to Stay Put – But Govt Targets Subsidy Leakages
RON95 Petrol Price to Stay Put – But Govt Targets Subsidy Leakages
Malaysians can breathe easy – the price of RON95 petrol will not be increasing. This reassurance comes after recent developments where the responsibility for managing targeted fuel subsidies was officially shifted to the Ministry of Finance, now under Prime Minister Datuk Seri Anwar Ibrahim. Speaking at the PKR National Congress in Johor Bahru, Anwar revealed that the Cabinet had rejected a suggestion to raise RON95 prices in exchange for direct cash handouts. “There was a proposal to hike fuel prices and compensate with aid. But I and the Cabinet disagreed. We are not in favour of increasing fuel prices,” he said. While the government isn’t moving to raise prices, Anwar pointed out a key issue: a significant chunk of RON95 subsidies are being used by groups who were never supposed to benefit – including foreigners and the very wealthy. He disclosed that each year, foreign nationals in Malaysia consume between RM3 to RM4 billion worth of subsidised petrol. These subsidies, intended to support ordinary Malaysians, are being misused on a large scale. To tackle this problem, the government is exploring new mechanisms to better control access to subsidies. One of the ideas being studied is the use of MyKad identification to restrict RON95 purchases to Malaysians only. Anwar stressed that this is part of a larger reform plan. Back in October, during the tabling of Budget 2025, he had announced a targeted subsidy system to be implemented by mid-2025. The move is expected to save Malaysia up to RM8 billion annually, with those funds redirected to improve public services like healthcare, transport, and education. He also reassured that 85% of Malaysians would not be affected by the targeted subsidy rollout. However, Anwar acknowledged the government’s shortcomings in communicating its subsidy reform plans, especially regarding changes to electricity and gas subsidies. He admitted that public confusion was partly due to poor messaging and promised clearer communication in future. Meanwhile, questions remain about PADU – the RM85 million centralised database created to help identify who should benefit from subsidies. With targeted subsidy plans in motion, the role and impact of PADU are still unclear. For now, though, Malaysians can take comfort in knowing that the pump price of RON95 remains unchanged – at least for the foreseeable future.
Singapore