Anwar announces M'sians only need to pay S$0.60 per litre of RON95 petrol

In an announcement on Wednesday (Jul. 23), Malaysian Prime Minister Anwar Ibrahim stated that the price of RON95 petrol will be reduced to RM1.99 (about S$0.60) per litre under a new targeted subsidy scheme.

This is a reduction from the old price of RM2.05 (S$0.62) per litre.

Anwar announced this alongside the one-off RM100 (about S$30) credit for all Malaysians aged 18 and above.

According to The Star, Anwar stated that further details regarding the RON95 petrol price reduction will be announced by the end of September 2025.

Foreigners will not enjoy the reduced price

However, this price is "exclusively for Malaysian citizens" and foreigners "will have to pay the unsubsidised market price".

"This will benefit around 18 million motorists, including youths as young as 16 and gig economy workers," Anwar said.

According to New Straits Times (NST), Anwar expressed that the reason for such a move is part of the government's commitment to ensure that Malaysia citizens "continue to benefit from subsidies, while plugging leakages to ineligible recipients".

He adds that this aligns with the government's efforts to optimise national resources and reduce wastage.

The sale of RON95 petrol to foreign-registered vehicles has been banned since August 2010, ensuring that the subsidised petrol is available only to Malaysia citizens.

Petrol subsidies cost RM20 billion in 2023 and 2024

Anwar further stated that "despite a drop in global oil prices, the unsubsidised price of RON95 remains around RM2.50 (about S$0.76) per litre, significantly higher than the subsidised rate Malaysians currently enjoy", NST reported.

The subsidies for RON95 were estimated to have cost about RM20 billion (about S$6 billion) in both 2023 and 2024.

Anwar had previously announced in his Budget 2025 speech in 2024 that the government would be introducing a new two-tier pricing system for RON95 petrol in mid-2025, where the subsidies will be cut from Malaysia's top 15 per cent income group, Malay Mail reported.

However, it remains unclear as to whether this will continue to be a part of the rationalisation plan.

Top photo via Canva