PM Anwar: RON95 petrol reduced RM1.99/litre under new ‘targeted’ subsidy, 18 million Malaysians to benefit

Prime Minister Datuk Seri Anwar Ibrahim has announced that the price of RON95 petrol will be reduced to RM1.99 per litre through a new targeted subsidy scheme, aimed at benefiting around 18 million Malaysians. This includes car and motorcycle users and youths from the age of 16, as well as gig economy workers.

He said as much while delivering a special address titled ‘Penghargaan Untuk Rakyat Malaysia’, which was teased well in advanced, leaving citizens to widespread speculation as to what might be in store.

Presumably, this revised/reduced pricing for subsidised RON95 will still somehow be targeted. However, seeing as how it seems to cover the large majority of Malaysians, it might only be the case that a handpicked portion of the citizenry - the ultra-wealthy - is excluded.

PM Anwar assured the public that everyday Malaysians will not be burdened by the changes in subsidy structure. The revised petrol pricing comes in response to fluctuating global oil prices, with unsubsidised RON95 expected to hover at RM2.50 per litre.

As both Prime Minister and Finance Minister, Anwar said the government is committed to completing the framework for targeted fuel subsidies by the end of September 2025. The new system is designed to ensure that financial assistance reaches those who truly need it, while curbing misuse among higher-income households and non-citizens.

He pointed to the recent restructuring of electricity tariffs as an example of the government’s targeted subsidy efforts. Despite some claims of rising costs, Anwar noted that 85% of domestic users actually saw up to a 14% decrease in their bills in July 2025, compared to the first half of the year.

Emphasising the need to make the most of national resources, he highlighted that the RON95 subsidy alone cost the country nearly RM20 billion annually in 2023 and 2024. With the new approach, the government aims to reduce wastage and improve efficiency while ensuring continued support for the rakyat.