In a decisive move to bolster fiscal efficiency and preserve subsidies for the most deserving segments of society, Malaysia’s Ministry of Finance has announced a new targeted subsidy scheme for RON95 petrol. Finance Minister II, Senator Datuk Seri Amir Hamzah Azizan, unveiled the initiative during a special parliamentary session on August 25, 2025, emphasising its twin goals: cutting subsidy leakages and continuing support for ordinary Malaysians.
Under the new framework, only eligible individuals—determined using centralized data from agencies like the Inland Revenue Board, Road Transport Department, and National Registration Department—will be able to purchase RON95 at the subsidised rate of RM1.99 per litre. Those deemed ineligible, such as non-citizens or high-income users, will pay the prevailing market rate. Financial authorities are finalising the eligibility criteria and operational procedures, with comprehensive guidelines expected by the end of September 2025.
This approach builds on past successes with targeted subsidy programmes for electricity and diesel, which have helped reduce excessive government spending while sustaining support for households in need. Funds saved from these reforms enabled a boost in STR and SARA allocations—to RM15 billion for 2025—and bolstered the education and healthcare budgets, with allocations reaching RM64 billion and RM45 billion respectively.
Technologically, the scheme will be streamlined using MyKad-enabled systems, e-wallets, and oil company applications. Citizens will be able to check eligibility, receive subsidies, and submit feedback through a dedicated portal and contact centre, enhancing both transparency and accessibility.
This targeted RON95 petrol subsidy forms part of a wider fiscal reform strategy aimed at addressing inefficiencies in universal fuel subsidies and protecting the economic well-being of ordinary Malaysians while promoting prudent expenditure.
