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RON95 Fuel Subsidy Reform Postponed for Further Review

22-Jul-2025


The government is taking a more cautious and thoughtful approach to the RON95 petrol subsidy rationalisation. They have decided to delay the plan for now because they don’t want to burden the public, especially during these tough economic times.

Communications Minister Fahmi Fadzil explained that Prime Minister Datuk Seri Anwar Ibrahim wants every decision under the Madani Government to truly help the people. Any new policy, especially those involving basic needs like fuel, must be carefully studied before being carried out. The goal is to improve lives, not make things harder.

The RON95 subsidy adjustment was originally planned for the second half of 2025, but it is now being reviewed again. The government wants to make sure the changes won’t cause price hikes or implementation issues.

This is similar to how they handled the SST expansion and the targeted diesel subsidy earlier this year. Finance Minister II Datuk Seri Amir Hamzah Azizan said the change could still happen in 2025, but only if they can correctly identify who really deserves the subsidy.



According to Fahmi, this move is part of a larger fiscal reform to fix the country’s spending system. At the moment, many subsidies are benefiting high-income groups and big companies, which the government wants to prevent. The goal is to make sure assistance reaches the people who truly need it.

He also stressed that the government is committed to protecting the citizens. That means doing things the right way, not rushing into changes that could cause more harm than good.

 
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