Two-tier RON95 petrol pricing system based on net income, says Rafizi – T15 to pay RM2.76, rest RM2.05

Two-tier RON95 petrol pricing system based on net income, says Rafizi – T15 to pay RM2.76, rest RM2.05

Last Friday’s tabling of Budget 2025 saw prime minister Datuk Seri Anwar Ibrahim announce the impending end to blanket subsidies for RON 95 petrol, which will be replaced by a targeted version that will come into place from mid-2025.

Anwar, who is also finance minister, said that 85% of the rakyat will continue to enjoy subsidised RON 95, which is currently pegged at RM2.05 per litre. He then introduced a new term – T15, for the top 15% of earners – and described this group as maha kaya. With no more subsidy, the ‘super rich’ and foreigners will pay the market rate for petrol, which is currently RM2.76.

This led to much chatter among netizens about who’s classified in the T15. Since the government mentioned ‘household’, is a working couple earning RM6,500 each (for a total household income of RM13,000) considered maha kaya in Malaysia?

Two-tier RON95 petrol pricing system based on net income, says Rafizi – T15 to pay RM2.76, rest RM2.05

Now, economy minister Rafizi Ramli has come out to clarify that future income classifications will no longer rely solely on gross household income, but will take into account net household income ‘to ensure the people can lead a decent life’.

“I can confirm that the new method will not depend solely on gross household income. We are currently working on improvements based on net household income. It will also consider several other factors. Once that’s finalised, we can then set the statistical lines (for population groups) such as B40 and T15,” he told reporters at the National Statistics Day 2024 Celebration yesterday, reported by Bernama.

He reiterated that a two-tier pricing system will be introduced and under this system, only the T15 will pay the market price for RON 95 at petrol stations. He said the government is currently reviewing the best mechanism to ensure effective implementation.

Two-tier RON95 petrol pricing system based on net income, says Rafizi – T15 to pay RM2.76, rest RM2.05

“The group that will no longer qualify for subsidies is what we refer to as the T15. We are in the process of defining exactly who falls into this category. For the remaining 30 million people, the mechanism is being fine-tuned and discussed for implementation,” he said.

Remember PADU? Launched earlier this year, PADU is a central data repository for individuals and households of citizens and permanent residents of Malaysia, and this will likely be used to draw up a new net income classification, which will determine your pump price.

Another big challenge for the government is the mechanism – how to implement this at the pump level. MyKad perhaps?

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • So, people earning a net 13k monthly have no prior financial commitments? This group already pays more taxes than those in the lower bracket, and now you’re:

    1. adding another 2% tax from 100k yearly income?
    2. remove fuel subsidies for these groups.

    Then, the government will brag that the Malaysian economy is doing well and the ringgit is strengthening. But for our group, this is nothing short of torture!

    Like or Dislike: Thumb up 27 Thumb down 4
    • Dah Menang Semua on Oct 21, 2024 at 3:26 pm

      OK la 85% not affected
      Kalo banding dgn RON97
      U buy car with loan 100K
      2.5% interest 2.5K yearly lo

      Like or Dislike: Thumb up 4 Thumb down 6
    • 1. after deducting commitment, balance NET RM13k is a lot. NET not Gross.
      2. addtional 2% 100k tax. is at which level of the tax bracket?

      Like or Dislike: Thumb up 1 Thumb down 0
    • T15 maha kaya on Oct 22, 2024 at 8:18 am

      We’ve been suckered by PMX. Time to move our wealth & investments to tax havens

      Like or Dislike: Thumb up 4 Thumb down 1
    • Pro-Palestine on Oct 23, 2024 at 4:48 pm

      @mfj
      You’re right but you must understand, not many countries have smart leaders like SG or China where the government generate money for the people. In Malaysia and most countries, low IQ ministers only know how to make money from their own people. Foreign investment, startups, state owned business etc semua dia tak tahu. Minum teh hari hari dan cakap besar mereka pandai

      Like or Dislike: Thumb up 2 Thumb down 1
  • Sohai on Oct 21, 2024 at 10:35 am

    Please get rid of him before implementing anymore moves in this area.
    He is clearly experimenting and has no idea.

    Like or Dislike: Thumb up 42 Thumb down 6
  • Nurul Izzah on Oct 21, 2024 at 10:44 am

    Anwar menang rakyat senang

    Like or Dislike: Thumb up 21 Thumb down 18
  • T15 mahakayap on Oct 21, 2024 at 11:20 am

    Now regret. Might as wel skip my degree last time. Jadi b40. Mahakaya rm13k household?? Rotfl

    Like or Dislike: Thumb up 19 Thumb down 1
    • Siapa suruh pandai belajar? Mak bapak kitorang x habis sekolah anak pun buta huruf. Siapa untung sekarang?

      Like or Dislike: Thumb up 5 Thumb down 0
  • Ben Yap on Oct 21, 2024 at 11:37 am

    the maha kaya are politicians that are enjoying stacked pensions and they still can claim allowances and charge the petrol usage to tax payers. PMX should stop the stacking of pensions if he is serious in not enriching the rich.

    Like or Dislike: Thumb up 32 Thumb down 1
    • The stacked pension starts if they got another post or only after full retirement?

      Like or Dislike: Thumb up 1 Thumb down 2
      • Ben Yap on Oct 22, 2024 at 11:41 am

        Each time they become a new MP or Minister, they will have a new pension scheme where it will be stacked on top of their previous post.

        Like or Dislike: Thumb up 1 Thumb down 0
    • Azmin Ali for PMXI on Oct 21, 2024 at 9:45 pm

      Your PMX hiding in his room mourning the killed militant leaders

      Like or Dislike: Thumb up 4 Thumb down 1
  • I’ll say NET DISPOSABLE INCOME, if they truly have everyone’s spending data they can easily calculate if a household have additional disposable income. Don’t need B40 M40 T20 distinctions anymore, tax and subsidize base on Net disposable income. Family have Net Disposable Income less than RM10? RM3000 Universal Basic Income per month per person direct credit into bank! NDI less than RM1000? RM2000 UBI/m/person! NDI less than RM10000? RM0 these fella already very rich! Absolutely zero subsidies! Can drop all other subsidies when introducing Universal Basic Income, everyone will definitely report every single cent they earn and spent each month.

    Like or Dislike: Thumb up 4 Thumb down 2
    • Azmin Ali for PMXI on Oct 21, 2024 at 10:18 pm

      I would say DREAM ON! Vote for me in the next GE and we’ll frame PMX with another homo case

      Like or Dislike: Thumb up 3 Thumb down 1
  • TinKosong on Oct 21, 2024 at 12:14 pm

    when is next GE…?

    Like or Dislike: Thumb up 28 Thumb down 4
    • I hope tmr then I ll vote them out. I wont vote for DAP this round. Clearly all this bull shit coming frm them frm behind i believe.

      Like or Dislike: Thumb up 14 Thumb down 1
      • Azmin Ali for PMXI on Oct 21, 2024 at 9:41 pm

        Gomen tebuk atap isn’t a bad idea after all. Any hotels wanna sponsor their ballrooms for the next Langkah? Langkah Hilton? Langkah Ritz-Carlton?

        Like or Dislike: Thumb up 4 Thumb down 0
  • Proton oh Proton on Oct 21, 2024 at 12:22 pm

    Maha Sotong

    Like or Dislike: Thumb up 16 Thumb down 2
  • The curse of being rich.

    1. No petrol subsidy
    2. No gov hospital subsidy
    3. No scholarship
    4. Got to pay min wages of RM1700 each employee.

    All above while paying top highest bracket of income tax.

    Like or Dislike: Thumb up 23 Thumb down 1
    • Kami miskin salah korang
      Korang kaya pun salah korang
      Terima kasih kerajaan madani kerana manjakan kitorang

      Like or Dislike: Thumb up 3 Thumb down 0
    • ravekof on Oct 25, 2024 at 10:51 am

      Curse of study hard and work hard to provide for family get rip off more.

      Like or Dislike: Thumb up 1 Thumb down 0
  • Great Riches on Oct 21, 2024 at 5:03 pm

    Please be considerate! Those household income which just marginally crosses the border of T20 actually is the worst hit rakyat! Much of the $ goes to insurance, kids education and retirement. Because of $ they work at a further distance (commutes hundreds of KM). Drive better vehicle due to safety. Now i start to wonder why do i need to work so hard, to get more money, just to be taxed and be burdened with higher expenditures.

    Like or Dislike: Thumb up 17 Thumb down 0
    • Blame your parents for instilling good values in you. Look at our parents who neglected us and leave us be. Who’s having the last laugh? Not you

      Like or Dislike: Thumb up 5 Thumb down 0
    • If I was considerate I wouldn’t have forced myself onto those young boys and scar their lives

      Like or Dislike: Thumb up 2 Thumb down 0
  • Rosdi on Oct 21, 2024 at 6:31 pm

    6500 each considered mahakaya… mahabodo ke apa ni…

    Like or Dislike: Thumb up 11 Thumb down 1
  • So the B85 can pump ron95 then sell to T15 for RM2.25? OK lah win-win.

    Like or Dislike: Thumb up 7 Thumb down 0
  • Aleroo Campana on Oct 21, 2024 at 8:03 pm

    Harey betoi..umum dulu,lepas tu baru fikir macam mana nak buat..betoi² punya merapu‍

    Like or Dislike: Thumb up 10 Thumb down 1
  • mjj384950 on Oct 21, 2024 at 9:56 pm

    Apa yg pening nak implement:
    1) use setel, caltexgo, shell etc (app register with mykad, so can determine which price to use)
    2) if 1 fails (or internet fails), then failsafe option use mykad at counter

    But can always encourage to use app for loyalty & cashback reward

    Like or Dislike: Thumb up 1 Thumb down 0
  • W.Tan on Oct 22, 2024 at 12:21 am

    High income earner already pay 27% personal tax n also paid more sales tax for luxury car that should be enjoy normal subside petrol if compare to neighbouring country. Anytime price differences at least Rm30000-50000 that our government tax advance. If divide RM30000 ÷ 0.75=40000Litres . 40000 Litres can last for how many years. We dont mind to buy no subsidy petrol if our government can follow neighbouring country new car tax tarriff .I feel government penalty those who contribute the most to country economy. Government should encourage low income by more self independence

    Like or Dislike: Thumb up 0 Thumb down 0
  • Shane lin on Oct 22, 2024 at 12:23 am

    PAULTAN10

    Like or Dislike: Thumb up 0 Thumb down 0
  • Mystery T15 on Dec 11, 2024 at 12:28 am

    No worries. I just take my maid to pay when refueling my Mercedes.

    Like or Dislike: Thumb up 0 Thumb down 0
 

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