The responsibility for the RON 95 petrol subsidy rationalisation has now been fully handed over to the finance ministry, according to economy minister Rafizi Ramli, as reported by the New Straits Times.

Rafizi explained that the economy ministry had brought the matter to the cabinet on four separate occasions. However, it’s now up to the finance ministry to take charge of the entire RON 95 subsidy process. “We’ll need to wait for an official announcement from them,” he added, suggesting that any further updates should come directly from the finance ministry.



Previously, Rafizi had outlined that the subsidy rationalisation would roll out in two phases — the first focusing on implementation at petrol stations (front-end), and the second involving identifying eligible recipients (back-end). While the front-end operations have moved under the finance ministry, the economy ministry will still handle back-end eligibility assessments, which will later be submitted to the cabinet for approval.

The government had earlier mentioned plans to kick off targeted RON 95 subsidies by mid-year, but more recently noted that economic conditions would influence the final timing.

As of March, no clear details had been disclosed on how eligibility would be determined. Although four proposals have been evaluated, a final mechanism had yet to be decided. That said, Finance Minister II Datuk Seri Amir Hamzah Azizan hinted that a two-tier pricing system might be used — one price for those who qualify, and another for those who don’t — with MyKad likely playing a role in identifying eligible users.