Prime Minister Datuk Seri Anwar Ibrahim has announced that the new price of RON95 petrol will be RM1.99 per litre, under the government’s upcoming targeted fuel subsidy programme. He confirmed that while the full mechanism is still being finalised, it is on schedule and will be fully unveiled by the end of September 2025.

In his nationwide address, Anwar said the new subsidy will benefit around 18 million Malaysians, especially youths and gig workers. This announcement comes shortly after Communications Minister Fahmi Fadzil revealed that the programme — initially set for June 2025 — had been postponed for fine-tuning.

Anwar explained that this targeted approach is meant to ensure efficient use of public funds and minimise subsidy wastage. He noted that in 2023 and 2024, the RON95 subsidy alone cost the government nearly RM20 billion per year.

This reform is part of broader efforts to rationalise subsidies, similar to the electricity tariff changes implemented in July 2025, which resulted in lower electricity bills for 85% of households.

While the RM1.99 price has been confirmed, the implementation details are still pending. Previously, the government mentioned a new income category called ‘T15’, which will exclude the top 15% of earners from receiving fuel subsidies.

Those not eligible for subsidies, such as foreigners and the ultra-rich, will have to pay the market price for RON95 — currently around RM2.62 per litre, based on prices from non-subsidised stations like Double Petrol in Perlis.