BUDGET 2025 | The government is looking to implement its long-awaited subsidy rationalisation programme for RON95 petrol in mid-2025, following a similar move for diesel earlier this year.

However, Finance Minister Anwar Ibrahim pledged that his administration will still be footing the subsidy bill to ensure that 85 percent of Malaysians will not be affected.

“For the avoidance of confusion, I would like to emphasise once again that subsidies will continue for 85 percent of the rakyat, so the government will have to bear an estimated RM12 billion in subsidies for the 85 percent.

“Thus, RM8 billion can be saved (by withdrawing subsidies) from the ultra-rich and foreigners, and I hope no one in these chambers is representing the ultra-rich and foreigners.

“The government proposes to implement RON95 subsidy rationalisation in the middle of 2025. I emphasise that these savings will ensure benefits in education, health, and the people’s welfare,” he said in his speech when tabling the Budget 2025 proposal in the Dewan Rakyat today.

In justifying the move, Anwar - who is also the prime minister - said the government paid a hefty subsidy bill exceeding RM20 billion in 2023, which provided one of the cheapest RON95 petrol prices.

RON95 is priced at RM2.05 per litre in Malaysia, he said, compared to RM5.85 per litre in Thailand, RM3.38 in Indonesia, RM9.02 per litre in Singapore, and RM2.66 in Saudi Arabia.

However, the policy of bulk subsidies means a large chunk of the RON95 subsidies is benefiting foreigners and the rich.

“It is an irrefutable fact that foreigners and the ultra-rich top 15 percent earners enjoy 40 percent of the RON95 subsidies amounting to RM8 billion.

“That RM8 billion is going from the tax collector to the ultra-rich and foreigners.

“Thus, it is better for that RM8 billion to be used for education, healthcare, and public transport facilities, including for the Orang Asli,” the Tambun MP said.

Prices of RON97, diesel in peninsula drop 2 sen from tomorrow

Prices of RON97, diesel in peninsula drop 2 sen from tomorrow

Prices of RON97, diesel in peninsula to drop 5 sen tomorrow

Prices of RON97, diesel in peninsula to drop 5 sen tomorrow

Price of RON95, RON97 unchanged, diesel drops 2 sen

Price of RON95, RON97 unchanged, diesel drops 2 sen

Limited impact on inflation from diesel rationalisation - BNM

Limited impact on inflation from diesel rationalisation - BNM