KUALA LUMPUR, May 17 — The Ministry of Finance has reaffirmed the government’s commitment to implement the rationalisation of RON95 petrol subsidies in the second half of 2025, as part of broader fiscal reforms aimed at narrowing the budget deficit.
The plan includes a two-tier pricing system where the top 15% of income earners will pay market rates, while the majority of Malaysians will continue to receive subsidised fuel — potentially saving the government RM8 billion annually. The Finance Ministry said it is actively refining the implementation details by engaging with a wide range of stakeholders and incorporating public feedback.
Officials stressed that the move, while fiscally necessary, is designed to protect 80–90% of the population from any adverse impact, especially amid easing global oil prices. The government views the subsidy reform as essential for curbing leakages and redirecting resources more effectively to those in genuine need.
