Malaysia Reduces RON95 Petrol Price to RM1.99 for Citizens, Says PM Anwar
KUALA LUMPUR, July 23 (Voice of Malaysia): Prime Minister Datuk Seri Anwar Ibrahim has announced that the price of RON95 petrol will be reduced to RM1.99 per liter for eligible Malaysians as part of the government’s long-anticipated targeted subsidy program.
The reduced price marks a slight drop from the current RM2.05 per liter and is expected to benefit approximately 18 million citizens, particularly those in the low- and middle-income brackets. The initiative aims to streamline government spending, ensuring that fuel subsidies are no longer enjoyed by high-income groups and non-citizens.
“This targeted approach is aligned with the government’s effort to optimise national resources for the benefit of the people and reduce subsidy wastage,” Anwar said in a national broadcast on Wednesday.
While the exact eligibility criteria and implementation timeline have yet to be announced, Anwar confirmed that more detailed information will be revealed by the end of September 2025.
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New Price for RON95: RM1.99 per litre (for eligible Malaysians)
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Previous Price: RM2.05 per litre
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Number of Beneficiaries: Estimated 18 million Malaysians
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Exclusions: Foreign nationals and higher-income individuals will pay market price
The announcement comes amid increasing pressure to reform Malaysia’s broad subsidy system, which has been criticized by economists and international observers as inefficient and unsustainable. While subsidies help shield the public from global fuel price volatility, blanket coverage has also led to subsidy leakage, with benefits reaching unintended recipients.
Anwar stressed that the reform will be implemented with care, guaranteeing that ordinary Malaysians will continue to be supported and shielded from significant price shocks.
“At the same time, those not eligible, such as foreign nationals, will need to pay the unsubsidised market price,” he said.
Economists have largely welcomed the move, viewing it as a necessary step toward fiscal sustainability. Malaysia has faced persistent budget deficits, and the government has been seeking ways to cut unnecessary spending while continuing to protect the most vulnerable groups.
The government has already ended blanket subsidies for diesel in 2024, and this RON95 announcement marks another milestone in broader economic reforms under the Madani economic framework.
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