Federal govt plans to implement RON95 petrol targeted subsidy in mid-2025

File photo for illustration purposes

By Karen Bong

KUCHING, Oct 18: The Federal government plans to implement a targeted subsidy for RON95 petrol in the middle of next year.

Prime Minister Datuk Seri Anwar Ibrahim highlighted the undeniable fact that foreign nationals and the top 15 per cent of wealthy consumers enjoy 40 per cent of the RM8 billion subsidy for RON95 petrol.

“It should be reminded that this RM8 billion fund would be better utilised for improving education, health, and public transportation facilities,” he said when tabling the National Budget 2025 in Parliament which was broadcast live through TVS today.

Anwar, however, emphasised that the government is committed to continue bearing RM12 billion in subsidies for the benefit of 85 per cent of the population.

As of now, the price of RON95 in Malaysia stands at RM2.05 compared to neighbouring countries like Thailand (RM5.85), Indonesia (RM3.38), Singapore (RM9.02), and Saudi Arabia (RM2.66).

“The low price has led the government to incur a subsidy cost for RON95 that reached RM20 billion in 2023,” he revealed.

He underscored that the savings from this initiative would be directed towards the wellbeing of the people, focusing on areas where assistance is most needed. — DayakDaily