Publication:
Fueling fairness in Malaysia’s two-tier RON95 pricing
Abstract
Malaysia’s blanket subsidies for RON95 petrol have come under scrutiny due to their significant share of the nation’s overall subsidy spending, which amounted to RM81 billion in 2023. In response, Prime Minister Datuk Seri Anwar Ibrahim announced in the 2025 Budget that the top 15% (T15) of income earners will be required to pay the prevailing market rate, while 85% of the population will continue to enjoy the subsidized price of RM2.05 per liter. Economy Minister Rafizi Ramli later clarified that the classification for subsidies will be based on net household income rather than gross income, ensuring a more accurate reflection of a family’s financial situation. Despite the government’s goal of reducing blanket subsidies and better targeting fiscal support, the proposed RM13,000 household income threshold has sparked serious concerns. Many argue that this rigid cutoff could harshly penalize households, particularly in urban areas where the cost of living is significantly higher.
Keywords
Subsidies , RON95 , Malaysia
Citation
Md Zabri, M. Z. (2024, October 30). Fueling fairness in Malaysia’s two-tier RON95 pricing. MalaysiaGazette.