Prime minister Datuk Seri Anwar Ibrahim has said the rationalisation of the RON 95 fuel subsidy won’t affect the majority of the population, reports NST.
“I don’t believe ordinary citizens need to worry or be impacted, regardless of the methods introduced in the RON 95 rationalisation issue. Do not pay attention to rumours; even during the fasting month, when concerns arise about increases in electricity tariffs, I want to reassure everyone that such increases will only affect the wealthy,” said Anwar.
“The same applies to RON95. In fact, our study shows that it is not 85%, but 90% of the population who will remain unaffected. Those who will be impacted are foreigners and the extremely wealthy. If someone earns RM50,000 a month, they should be expected to contribute a little more,” he added.
Yesterday, second finance minister Datuk Seri Amir Hamzah Azizan revealed that more than 85% of the people will benefit from subsidised RON 95 petrol. He added that subsidy mechanism will be based on a two-tier pricing system, with the MyKad being used to determine the amount that users will pay at pumps.
The restructuring of RON 95 petrol subsidy from a blanket to targeted approach was announced during the tabling of Budget 2025 by Anwar, who said the change will take place in mid-2025. At the time, he said the subsidy bill was RM20 billion a year to keep the price of RON 95 at RM2.05 per litre, and moving to targeted subsidies would incur savings of RM8 billion.
“I need to remind everyone that it is better for this RM8 billion to be channeled into education facilities, healthcare and public transport,” Anwar, who is also the finance minister, told reporters today after performing Friday prayers in Shah Alam.
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