#Budget2025: Anwar Announces Plan To Implement Targeted RON95 Petrol Subsidy By Mid-2025
The wealthiest 15% of Malaysians currently benefit from 40% of the RM8 billion subsidy.
By Sadho Ram — 18 Oct 2024, 04:53 PM
The government is set to implement a targeted subsidy scheme for RON95 petrol by mid-2025, announced Prime Minister Datuk Seri Anwar Ibrahim while tabling the 2025 Budget today, 18 October
The move aims to reduce the burden on public finances, as it was revealed that foreign nationals and the wealthiest 15% of Malaysians currently benefit from 40% of the RM8 billion subsidy, he said.
At RM2.05 per litre, the RON95 price is significantly lower than in neighbouring countries.
This subsidy cost the government RM20 billion in 2023.
However, the new scheme will continue to benefit 85% of the population, with RM12 billion set aside for their needs. The savings will be redirected towards public services like education and healthcare.
Anwar emphasised that the majority of Malaysians will remain unaffected by the change.
