KUALA LUMPUR, November 18 — With the proposed removal of RON95 subsidies for Malaysia’s top 15 percent income earners (T15), many households are evaluating cost-effective alternatives to traditional petrol-fueled cars. Prime Minister Datuk Seri Anwar Ibrahim’s announcement during Budget 2025 has stirred concerns, particularly for middle-class families who may face significant fuel price hikes. Analysts suggest that affected households may need to consider switching to electric vehicles (EVs) or exploring other fuel-efficient options.
For T15 households accustomed to filling up a 40-litre tank Honda City at RM82, a hypothetical RON95 price hike could see them paying around RM500 per month on fuel, compared to RM340 with subsidies. Yearly, this could amount to nearly RM6,000 in fuel costs. Maintenance and servicing also add up, further impacting budgets, leading some analysts to recommend exploring EVs as a potentially cost-saving alternative in the long run.
An entry-level EV, such as the BYD Dolphin, could save on fuel expenses but poses its own financial challenges. With a base price of RM100,000, a five-year loan tenure with a 10 percent down payment would require monthly payments of around RM1,500. Including an estimated RM220 monthly charging cost, the total monthly expense would be approximately RM1,700. While operational costs are lower than petrol, the high initial investment remains a barrier for many middle-income families.
For those seeking immediate savings, switching to a petrol-based scooter could be a practical solution. A Yamaha Nmax 155, for example, consumes less RON95, with monthly fuel costs of around RM135 at an unsubsidized rate. This provides substantial savings, making it an appealing option for families considering two-wheelers as an economical alternative.
Ultimately, rising fuel costs may prompt lifestyle changes, particularly as mobility expenses continue to climb. With the potential shift towards EVs, scooters, or public transport, T15 households face a range of options as they adapt to the evolving economic landscape.
