T15 fuel subsidy criteria may push consumers to downgrade vehicles or switch to EVs – MIDF Research

T15 fuel subsidy criteria may push consumers to downgrade vehicles  or switch to EVs – MIDF Research

The proposed T15 income bracket criteria for the RON95 fuel subsidy that is to be finalised by the middle of this year may drive consumers to downgrade their vehicles or change to electric vehicles, according to MIDF Research, reported Bernama.

The upcoming change in policy may influence buyers to lower-cost internal-combustion engined vehicles or switch to EVs, the latter particularly before the tax exemptions for fully imported (CBU) EVs expire at the end of this year.

“Meanwhile, the auto sector’s revised excise duty has been extended, which will expand duties on completely knocked down (CKD) components. The tax, set to be effective January 2026, is expected to drive CKD car prices up by 10% to 30%,” said MIDF Research.

T15 fuel subsidy criteria may push consumers to downgrade vehicles  or switch to EVs – MIDF Research

Last week, economists voiced support for a two-tier pricing structure for RON 95 petrol instead of cash aid, and said that charging for the fuel by vehicle type would not stop the wealthy from purchasing subsidised RON 95 petrol while driving more affordable cars.

When announced at the tabling of Budget 2025, prime minister and finance minister Datuk Seri Anwar Ibrahim said that the upcoming cut in RON 95 petrol subsidy would see the nation’s top 15% of earners pay more for the fuel.

With no elaboration on who exactly constitutes the T15, many searched and found statistics that pointed to RM12,000 or RM13,000 income as the point where a Malaysian household is classified as T15. For a working couple, that is RM6,000 salary each. Anwar has since walked back on his T15 definition.

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Mick Chan

Open roads and closed circuits hold great allure for Mick Chan. Driving heaven to him is exercising a playful chassis on twisty paths; prizes ergonomics and involvement over gadgetry. Spent three years at a motoring newspaper and short stint with a magazine prior to joining this website.

 

Comments

  • papajohn on Mar 25, 2025 at 12:20 pm

    Just give petrol subsidy to all Malaysian regardless of their income bracket, they all paying tax. Stop selling petrol subsidy to foreigner only – inclusive of Bangla & Indo workers.

    Like or Dislike: Thumb up 37 Thumb down 4
    • Rakyat Malaysia on Mar 25, 2025 at 5:28 pm

      Stupid PH Gomen. T15 can downgrade to smaller car or go EV coz they rich enuff. But what about B40s? Downgrade to riding kapcais coz they where can mampu switch to EV hah??? Then KL will become shithole like Bangkok or Vietnam chockful with motors as our affordability level drops.

      Is this what our rakyat voted them for???

      Like or Dislike: Thumb up 14 Thumb down 9
      • Richard Teo on Mar 26, 2025 at 11:48 am

        Whoever PH-PN-BN sama jer
        hutang terlalu lampau
        kena potong kos…

        (2014) BOSSKU era
        Replace fuel subsidy with targeted hand-outs https://paultan.org/2014/11/18/replace-fuel-subsidy-targeted-cash-transfers/

        (2019) Mahathir 2.0 era
        1/RON 95 targeted fuel subsidy plan is ready, Cabinet approval soon – electricity bill to determine eligibility https://paultan.org/2019/09/28/ron-95-targeted-fuel-subsidy-plan-is-ready-cabinet-approval-soon-electricity-bill-to-determine-eligibility/

        (2022) PERIKATAN’s era
        2/Govt fuel subsidy bill expected to be RM28b for 2022, blanket subsidy to end in favour of targeted subsidies https://paultan.org/2022/05/21/govt-fuel-subsidy-bill-expected-to-be-rm22b-for-2022-blanket-subsidy-to-end-in-favour-of-targeted-subsidies/

        3/BMW cannot receive the same subsidy as Kancil, says Azmin as he calls for targeted fuel subsidy system https://paultan.org/2022/05/24/bmw-cannot-receive-the-same-subsidy-as-kancil-says-azmin-as-he-calls-for-targeted-fuel-subsidy-system/

        4/Targeted fuel subsidy pilot test – B40/M40 to receive e-wallet credit, but everyone to pay higher fuel prices https://paultan.org/2022/07/29/targeted-fuel-subsidy-pilot-test-b40-m40-to-receive-e-wallet-credit-but-everyone-to-pay-higher-fuel-prices/

        (2023) Anwar’s era
        5/Formulating a targeted subsidy mechanism ‘complex’, but gov’t working on it as fast as possible https://paultan.org/2023/06/19/formulating-a-targeted-subsidy-mechanism-complex-but-govt-working-on-it-as-fast-as-possible-anwar/

        6/Government conducting public survey on targeted subsidies – RON 95 implementation in 2H 2024 https://paultan.org/2023/12/04/government-conducting-public-survey-on-targeted-subsidies/

        Like or Dislike: Thumb up 16 Thumb down 7
        • Lets See on Mar 26, 2025 at 4:35 pm

          Butthurt much? GST that you idiots were fooled to vote against was supposed to replace subsidies and be more fairer to all rakyat. Now T15 will kena higher tax but you think they will absorb? Hahaha no way, they will just push the higher cost to their B40 staffs & customers. The B40s will suffer more under PH.

          Like or Dislike: Thumb up 6 Thumb down 3
          • Dah Menang Semua on Mar 27, 2025 at 3:55 pm

            xBleh B85 semua nak bini 4
            belanjaan kena mampuan diri
            xNak jadi B40 jgn makan gaji

            Like or Dislike: Thumb up 0 Thumb down 1
        • RM1.50/L petrol mana? on Mar 27, 2025 at 11:25 am

          As above

          Like or Dislike: Thumb up 1 Thumb down 0
      • MIDF research lol! must be kid that just came out from uni doing the research.

        Like or Dislike: Thumb up 1 Thumb down 0
    • Rama Dawn on Mar 25, 2025 at 6:36 pm

      Many Malaysian awek married to Bangladesi Indonesian anglo-saxon will also gets fuel subsidiaries

      Like or Dislike: Thumb up 5 Thumb down 3
    • Ajibkor waiting for his Rolls Royce on Mar 25, 2025 at 9:20 pm

      Just credit a predetermined bantuan lump sum into those non T15.,every month.Up to rakyat to downsize or buy Evs,accordingly.
      Lately ,I have seen rich dudes with BMs,mercs buying Ativas as alternative 3rd cars in anticipation of July2025 price hike of Ron95.
      Just make it simple,PMX.

      Like or Dislike: Thumb up 1 Thumb down 5
  • Rosdi on Mar 25, 2025 at 12:32 pm

    If by vehicle type, how are you going to enforce it? Easiest… blank no subsidy for all but those who eligible can apply for a special petrol discount card, pay at the counter with that special price.

    Like or Dislike: Thumb up 4 Thumb down 0
  • Saipol Bookari on Mar 25, 2025 at 12:48 pm

    Anwar not only walk back but he also like to play back. Ask me how I know

    Like or Dislike: Thumb up 14 Thumb down 0
  • Ben Yap on Mar 25, 2025 at 1:23 pm

    prices of CKD and CBU cars go up, fuel go up and electricity tariffs also go up. what are the areas under anwar where prices go down? for now i only see our bank accounts go down and share prices go down la.

    Like or Dislike: Thumb up 22 Thumb down 0
    • Hantar dia naik atas nak dia cari duit. Memang dia cari duit tapi melalui rakyat Malaysia!

      Like or Dislike: Thumb up 3 Thumb down 0
  • Dah Menang Semua on Mar 25, 2025 at 1:26 pm

    Come on babe,
    RON95 at 3.05
    I’m ready for it

    Like or Dislike: Thumb up 7 Thumb down 2
  • Azmir on Mar 25, 2025 at 2:01 pm

    12k already T15? Then what T20 supposed to be, 10k?

    Like or Dislike: Thumb up 6 Thumb down 0
    • rambutan on Mar 26, 2025 at 9:49 am

      RM12K household income in KL is considered low. Rent alone taken half of that amount in most locations. How can they group these people as T15 (maha kaya) are they stupid???

      Like or Dislike: Thumb up 5 Thumb down 0
      • Ben Yap on Mar 26, 2025 at 4:36 pm

        where got RM6k rent in most place in KL? you living in squatter area where got know about rental price?

        Like or Dislike: Thumb up 0 Thumb down 0
  • This is the formula on Mar 25, 2025 at 2:03 pm

    YB Rafizi, just increase the RON95 by 10 sen each year. With such gradual increment, businesses, market & consumers will adjust organically

    Government will see its saving growing by the years. A saving of 10 sen in year one, year two will see a saving of 20 sen per litre.

    The best thing is, ppl won’t notice the increment from the past few years. They will mumble a bit on the current year increment only.

    Using this formula, you don’t even have to subsidize the M40. Maybe just the B40. But remember the changes is only 10 sen per year.

    Like or Dislike: Thumb up 8 Thumb down 4
    • RM1.50/L petrol mana? on Mar 25, 2025 at 5:29 pm

      No this above is the formula as he had janji during elections. Either this or he must step down now!

      Like or Dislike: Thumb up 7 Thumb down 1
  • Nurul Izzah on Mar 25, 2025 at 2:44 pm

    Anwar menang rakyat senang

    Like or Dislike: Thumb up 7 Thumb down 11
  • Janji Dicapati on Mar 25, 2025 at 2:45 pm

    Refer my name

    Like or Dislike: Thumb up 11 Thumb down 1
  • Paul Chan on Mar 25, 2025 at 3:21 pm

    This feels a little “penalizing” to the T15 group. It could backfire whereas they migrate away, or worse, move their businesses, investments and operations out of the country, to cheaper neighbours. Thread carefully, politicians.

    Like or Dislike: Thumb up 17 Thumb down 2
    • Mat Biru on Mar 25, 2025 at 6:28 pm

      You really think T15 going to do all that just because petrol price go up?? Lol

      Like or Dislike: Thumb up 6 Thumb down 5
      • Lets See on Mar 26, 2025 at 4:24 pm

        The T15 ady start doing it you fool. You think they wait for this shit to come.

        Like or Dislike: Thumb up 4 Thumb down 0
    • Pro-Palestine on Mar 26, 2025 at 9:12 am

      Punishing the rich i.e people who are capable are stupid. If I am a smart leader, I will punish the lazy and the poor so that under me everyone is scared to be poor. Malaysia will become high income earning country in no time

      Like or Dislike: Thumb up 4 Thumb down 1
      • Meleisian politics 101 on Mar 26, 2025 at 12:49 pm

        Rule No. 1
        Weaponize poverty and keep the poor addicted to handouts. This will guarantee votes

        Like or Dislike: Thumb up 8 Thumb down 2
    • My salary alone is T15 but I do not have the money to migrate. I have no business too. I am just a poor worker, worrying everyday not enough money to pay for education fee of my kids.

      Like or Dislike: Thumb up 3 Thumb down 1
  • Bruce on Mar 25, 2025 at 3:42 pm

    Single with income more than RM12~13k considered as T15 sounds reasonable.
    But married couple with income more than RM6000 each considered as T15? Seriously?
    Same total income by spent 2 people, what if there are children some more?

    Like or Dislike: Thumb up 10 Thumb down 0
  • ThePolygon on Mar 25, 2025 at 7:59 pm

    Kesian T15 dahlah bayar tax a lot. Last time the argument was that T20 uses more subsidy then the rest. If they downgrade their cars, it’s the same as others, so they should enjoy the subsidy like others?

    Like or Dislike: Thumb up 3 Thumb down 0
  • Bryant on Mar 25, 2025 at 11:26 pm

    If you’re really T15, doubt the extra in fuel price is going to make you starve. What is it? 500 bucks extra a month? If you’re crying about fuel hikes, you’re not T15. Chill tf out.

    Like or Dislike: Thumb up 2 Thumb down 1
    • Ben Yap on Mar 26, 2025 at 4:53 pm

      But i not willing to give my money to government even though i’m T15. the MPs all enjoy stacked pension plan and benefit packages and allowances on top of their salary using tax payers money. They should cut their benefits too.

      Like or Dislike: Thumb up 4 Thumb down 0
      • Bryant on Mar 27, 2025 at 2:59 pm

        Sorry, tax is not voluntary. What we pay in tax goes to a lot more than just paying federal staff and more specifically ministers and whatever their compensation packages are. If you’re that concerned about it, I suggest creating a movement to push for real change by pressuring policy makers. I’ll definitely sign up for such a cause.

        Bitching about paying more for fuel in tax because you’re earning more is kind of silly. It is just another form of progressive tax, get over it.

        Like or Dislike: Thumb up 0 Thumb down 0
      • If you are not willing to give your tax money, then buy an EV, zero tax. Then install rooftop solar so you also wont be paying to TNB.

        Like or Dislike: Thumb up 0 Thumb down 0
  • Bad bad decision. Sad to this happening. Treat everyone equal!

    Like or Dislike: Thumb up 1 Thumb down 0
  • Tan Chin Sown on Mar 27, 2025 at 12:31 am

    Better jusst set 1.5 liter engine car Non Turbo.can get subsidy if show My Kad. These will push our local car industries too. It doesnt mattet wheyher you are T15 or T5 , if you drive a small 1.5 litre car then you got subsidy. Have to set a target how muvh petrol can be used a month..Its fair for all. Rakyat dont want to subsidised poorbpeople driving Fuel Guzxlers car either. .The people have no choice but to downgrade to.smaller CC car to reduce CO2 footprint. Goverment also no need to suvsized s much as how much a 1.5 litre car consime. Further 1.5 lire is Afta car..

    Like or Dislike: Thumb up 0 Thumb down 0
  • If we can vote you to be PM, we can pull you down anytime!

    Like or Dislike: Thumb up 3 Thumb down 0
  • A lot of people here perasan they are top 15% of the total Malaysian population. Haha.

    Like or Dislike: Thumb up 0 Thumb down 0
 

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