Despite earlier speculation about a fuel price hike, the Prime Minister recently confirmed that RON95 petrol will not see an increase from its current rate of RM2.05 per litre. Instead, he hinted at a potential gradual price reduction, with changes expected to be guided by market conditions and aimed at improving subsidy efficiency.
Speaking at the 2025 PKR National Congress, the Prime Minister emphasised that fuel subsidies should be better targeted. A key focus of his address was the estimated RM3 to RM4 billion in fuel subsidies currently benefiting the foreign population residing in Malaysia. He proposed that this segment may face price adjustments to reduce government expenditure.
He also floated the idea of requiring Malaysians to present their identification cards (ICs) when purchasing subsidised RON95 petrol. This measure, if implemented, would aim to ensure that only eligible citizens benefit from government subsidies while limiting access for non-citizens and potentially high-income individuals who do not need the financial assistance.
The Prime Minister pointed out that Malaysia, unlike many other nations, still offers blanket fuel subsidies, including to some of the wealthiest citizens. He questioned whether it was reasonable for owners of ultra-luxury cars, such as Rolls-Royces, to benefit from the same fuel subsidies intended to support average citizens.
The top five percent of Malaysia’s wealthiest, according to him, continue to enjoy the benefits of subsidised fuel while lobbying to maintain their entitlements. The government, however, appears determined to redirect subsidies away from this group to focus on lower- and middle-income earners who are most in need.
Beyond petrol, the Prime Minister also addressed the broader issue of subsidy reform. He mentioned that subsidies on gas and liquefied natural gas (LNG) would be reviewed in upcoming policy discussions. In a move to reinforce fiscal responsibility, he called for further examination of the newly introduced e-Invoice system. This, he noted, was essential for safeguarding national revenue and preventing leakages within the taxation framework.
These announcements reflect the administration’s shift toward more targeted subsidies and better fiscal management, indicating that future reforms could involve both technological upgrades and stricter enforcement to ensure fairness in public spending.
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