23/09/2025

TUESDAY | SEPT 23, 2025

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Cheaper fuel for M’sians from Sept 30

o In bold move to cut petrol prices amid global uncertainty, govt trims RON95 to RM1.99 per litre through targeted subsidy, citing efficiency gains and stronger revenue collection

Ű BY HARITH KAMAL newsdesk@thesundaily.com

Sept 28. From Sept 30, the subsidy opens to the wider public – 16 million Malaysians aged 16 and above with a MyKad and valid driving licence. The government has also set a monthly eligibility ceiling of 300 litres for all citizens. However, e-hailing drivers are exempted from this limit and may apply for higher allocations according to their needs. Foreign-registered vehicles, meanwhile, are only allowed to fill up with RON97, while foreigners using locally registered plate numbers can purchase RON95 at the unsubsidised price of RM2.60, as the subsidy is reserved for Malaysians with a valid driving licence. For recipients of Sumbangan Asas Rahmah (Sara), verification for Budi Madani RON95 will also be linked to MyKad. Anwar highlighted Malaysia’s competitive fuel prices internationally, noting that even among oil-producing nations, the country maintains some of the lowest fuel costs. “We are the only country in the world bold enough to lower petrol prices amid an uncertain economy,” he said, citing comparison with Saudi Arabia where subsidies amount to RM0.50 per litre making the current price there RM2.61 per litre. Among neighbouring countries, he said, Malaysia remains one of the cheapest, with only Brunei slightly lower. Anwar framed the subsidy within the government’s broader Madani vision of civil society, which emphasises effective governance at all levels. He acknowledged that initial implementation may face minor

PETALING JAYA: Malaysians will soon pay less at the pump. From Sept 30, the price of RON95 petrol drops from RM2.05 to RM1.99 per litre – a rare move in today’s uncertain economy. Prime Minister Datuk Seri Anwar Ibrahim said the cut comes under the government’s Budi Madani RON95 subsidy scheme, designed to ease household costs while keeping public funds in check. “This policy is possible due to improved efficiency, better revenue collection and the reduction of leakages such as through smuggling and tax evasion, ensuring greater benefits are returned to the people,” Anwar said during the Prime Minister’s Department’s monthly assembly with staff. Budi Madani RON95 applies only to Malaysian citizens. “Foreigners and large companies are not eligible and will pay RM2.60 per litre. “Citizens need only present a valid MyKad and driving licence to enjoy the subsidy, with no further registration required,” Anwar said, adding that the rollout will be staggered to avoid congestion. Police and military personnel get first dibs on Sept 27, followed by B40 households and selected M40 recipients of the Sumbangan Tunai Rahmah (STR) scheme on

challenges, but these will be addressed to improve subsequent trials. Beyond easing household expenses, the subsidy will free up funds for rebuilding essential infrastructure affected by floods, including

THESUN GRAPHICS BY HARITH KAMAL

clinics, schools and more. The funds will help address these challenges while we continue focusing on education, healthcare and basic infrastructure.” Anwar added that savings from the switch will also be redistributed to citizens through social assistance programmes such as the STR and Sara.

roads, clinics, schools and educational institutions. “After the implementation, the RON95 price may rise slightly, but the benefits will go directly to the people, particularly for infrastructure development. “For example, in Sabah, the floods caused extensive damage to roads, slopes,

Mixed reactions as citizens weigh impact of price cut

PETALING JAYA: Malaysians have largely welcomed the government’s move to lower RON95 petrol prices from RM2.05 to RM1.99 per litre, but reactions are mixed on whether the six-sen cut will meaningfully ease house hold expenses. The reduction, introduced under the Budi Madani RON95 targeted subsidy, applies only to Malaysian citizens. For operations executive Nur Qalbi Ruslan, 39, the savings are noticeable but limited. “I support the government lowering the price, but for me, it doesn’t make much difference because the reduction is only six sen per litre. “If divided by 300 litres per month, that’s only about RM18 in savings. Meanwhile, other taxes imposed by

on overall household spending,” he said, strongly supporting the citizen only policy. However, he noted the system’s vulnerabilities. “The likelihood of losing a wallet or MyKad increases. Additionally, the system can ‘go down’ unexpectedly. I hope the government, petrol stations and other relevant stakeholders have prepared a mitigation plan before fully implementing this redemption system.” While many welcome the price cut as a gesture to ease financial burden, the feedback highlights lingering concerns over its practical impact, the adequacy of the 300 litre cap and the reliability of a MyKad-based redemption system. – By HARITH KAMAL

Malaysians, he agreed it was fair. “The money from subsidies comes from the nation’s funds, so logically only citizens should benefit. Foreigners can still buy fuel, just not at the subsidised price – same as with RON97,” he said, adding that MyKad is convenient so long as it works reliably. “Everyone already has a MyKad, so there’s no need to install apps. But if the card suddenly can’t be scanned at the petrol station, that would be troublesome. Senior citizens may also struggle with the technology.” For analyst Muhammad Danish Afwan, 25, the subsidy could help lower household costs but comes with risks. “This reduction can help lower household expenses. I feel that this move is likely to have a positive impact

“For me personally, 300 litres is enough since I only use the car for commuting and daily errands. But my husband travels long distances frequently for work, so for him it’s definitely not enough. In the end, fuel expenses still weigh heavily on our family budget,” she said. On the use of MyKad for subsidy redemption, Tina described it as practical but warned of potential glitches at petrol stations. Azmin (not his real name) took a more positive view, noting that even small savings can add up for commuters. “Even though the difference looks small, over time it can still save some money. Hopefully in the future, the price can be reduced further,” he said. On subsidies being limited to

the government amount to more than RM18,” she said. Nur Qalbi also flagged the 300-litre monthly cap as a challenge. “For my family, 300 litres per month is not enough. Usually, we use 500 to 600 litres per month, including interstate travel as well as outstation trips for work,” she said. She added that relying on the MyKad system could be problematic. “It’s troublesome because the system may experience downtime, which makes it difficult to purchase subsidised petrol. On top of that, misuse of MyKad and data leaks can also easily happen.” Tina Majid, 54, a logistics manager, said the 300-litre cap works for her household but is limiting for her husband.