Prime Minister Anwar Ibrahim has just shared some much-welcomed news with Malaysians, including updates on the long-talked-about RON95 fuel subsidy. The government had previously delayed changes to avoid burdening the public, but now, it’s moving ahead with plans to introduce targeted subsidies for RON95 petrol. Full details will be announced by the end of September 2025.
Reassuring the public, Anwar said the government will make sure regular Malaysians won’t be affected. In fact, he announced that the price of RON95 petrol will drop to RM1.99 per litre, a move that will benefit around 18 million Malaysians. “This move is set to benefit Malaysian drivers, motorcyclists, young people as early as 16 years old, and gig workers,” he says, adding that foreign nationals and those not eligible, however, will have to pay market prices without subsidies. According to the Prime Minister, this targeted approach is meant to make better use of the country’s resources and cut down on subsidy wastage.
“In 2023 and 2024 alone, RON95 subsidies cost the government nearly RM20 billion a year. Even with global oil prices coming down, unsubsidized RON95 still costs around RM2.50 per litre, much higher than what Malaysians currently pay,” Anwar added.
On top of that, the Prime Minister also announced several other initiatives that include the Sumbangan Asas Rahmah (SARA) cash aid programme will be expanded to include all Malaysians regardless of income level, and highway toll rates will remain unchanged.
To cap it off, Monday, 15 September 2025 , has been declared an extra public holiday in celebration of Malaysia Day.
