Subscribe to our FREE Newsletter, or Telegram and WhatsApp channels for the latest stories and updates.
Starting from 30 September, all Malaysians will get to enjoy a subsidised RON95 fuel price at RM1.99 per liter, as long as they have a MyKad with a working chip and a valid driver’s licence.
Prime Minister Datuk Seri Anwar Ibrahim announced today (22 September) that the targeted subsidy will cover all Malaysians on every income level, Malay Mail reported.
“We have decided to set the price of RON95 petrol from the current RM2.05 per litre to RM1.99 per litre starting September 30, 2025.
“This benefit is a gesture of appreciation, inspired by the spirit of Independence Day and Malaysia, as a token of gratitude to all Malaysians,” he said.
Anwar emphasised that non-citizens and large companies will not be eligible for the subsidy and will have to pay RM2.60 per litre.
Subsidised petrol will be capped at 300 litres per month
According to Anwar, every eligible Malaysian will have a quota of 300 liters per month for the subsidised price.
Anwar said each eligible Malaysian will qualify for 300 litres of subsidised fuel per month.
“We set it at 300 litres because, on average, it’s about 150, mostly 200. At most 250. None go beyond 300,” Anwar explained.
“Unless the first wife is in Gombak and the second wife is in Seremban. That kind of back-and-forth maybe, but not many people,” he added in jest.
However, according to Anwar, persons working in the e-hailing industry will not be subject to the cap; the Finance Ministry will make an announcement regarding registration later.
Previously, the government proposed an income-based subsidy for RON95 fuel.
To be specific, it was going to be a two-tiered pricing system that’s meant to offer eligible Malaysians in lower income brackets the subsidised fuel, while Malaysians with higher income and foreigners would have to pay market prices for petrol.
Additionally, luxury vehicle owners would have potentially been excluded from the subsidies.
READ MORE: What Is Petrol Subsidy & Why Are There Talks To Remove It?
How the targeted subsidy works
Anwar says tapping into the new subsidised fuel scheme will be an easy process for Malaysians.
Known as Budi95, the system works without any registration, similar to the Sumbangan Asas Rahmah (SARA) aid programme. To enjoy the subsidised price, users just need to verify their MyKad. Card readers will be installed at petrol pumps and over the counter to help keep things moving smoothly.
According to data from the Road Transport Department (JPJ) and the National Registration Department (JPN), more than 16 million Malaysians are expected to benefit from the initiative.
He urged the public not to rush on the first day, September 30.
“You can still do it on October 2, or even October 4 — just don’t all crowd at once,” he said.
For those who prefer going digital, options like Touch ‘n Go eWallet and petrol company apps such as Setel will also be available, meaning drivers won’t need to show their MyKad every single time.
READ MORE: Device To Determine Eligibility For Petrol Subsidy Spotted On Social Media
Why is the government implementing targeted subsidies for RON95 petrol?
Malaysia is implementing targeted fuel subsidies to curb widespread leakage and smuggling, ensure subsidies reach only eligible and needy groups like low-income households and small-scale farmers, and free up government funds for reallocation to essential programs like social welfare, rural development, and minimum wage boosts.
A targeted subsidy for diesel was implemented starting in mid-2024, focusing on eligible individual owners of diesel vehicles and various industries like agriculture and small-scale commodities.
READ MORE: Public Applauds Crackdown On Fuel Subsidy Abuse, Demands More Action In Johor
Share your thoughts with us via TRP’s Facebook, Twitter, Instagram, or Threads.
