SHAH ALAM – Prime Minister Datuk Seri Anwar Ibrahim has announced that the price of RON95 petrol is expected to fall to as low as RM1.99 per litre once the government rolls out its targeted fuel subsidy programme at the end of September, this year.
Speaking during a special nationwide live broadcast earlier today, Anwar said the new mechanism was designed to ensure that subsidies were channelled more effectively, benefiting those who truly needed it particularly the lower and middle income groups.
"When the targeted subsidy for RON95 is implemented, Malaysians will be able to enjoy a significantly lower petrol price of RM1.99 per litre.
"This targeted approach is part of our ongoing commitment to optimise national resources and reduce unnecessary subsidy leakage," he said.
He said the move was expected to benefit approximately 18 million drivers and motorcyclists across the country, including youths as young as 16 and gig economy workers who depend heavily on fuel for their livelihoods.
He also stressed that under the revised subsidy model, foreign nationals residing in or travelling through Malaysia will no longer enjoy subsidised fuel and will instead pay the full market rate.
Anwar, who also serves as Finance Minister revealed that the cost of subsidising RON95 petrol in 2023 and 2024 alone was nearly RM20 billion annually.
This, he said, was despite the fact that global oil prices have eased somewhat in the current year.
"Even with the global price dip, the unsubsidised price of RON95 petrol in Malaysia remains around RM2.50 per litre, considerably higher than the current subsidised rate enjoyed by the public," he added.