RON95 Fuel Subsidy

• Gov’t to introduce monthly capped quota for targeted RON95 subsidy to prevent misuse – Amir Hamzah

  In Local News / By Anthony Lim / 26 August 2025 11:48 am / 28 comments

  

  The government says it will introduce a monthly capped quota for eligible individuals when it rolls out its RON 95 fuel subsidy rationalisation plan. According to finance minister II Datuk Seri Amir Hamzah Azizan, this is to prevent those who are not eligible for it to benefit from having someone else pump subsidised fuel for them, The Edge reports.

  He said that the finance ministry is finalising the quota system as part of the implementation, which is currently in the last stages of being fine-tuned in terms of the criteria for eligibility and the delivery mechanism that will be deployed. “We will have a quota. We must have a quota. We do not want someone to pump fuel for other people,” he said in parliament.

  “We must set quotas to prevent misuse. The ministry is carefully considering how to allocate quotas, ensuring that ordinary citizens have enough subsidised fuel, while managing risks of overuse or fraud,” he said.

  

  He added that there will be a distinction between ordinary users and those whose everyday work relies on the usage of fuel, such as p-hailing delivery riders and ride-hailing drivers. “Ordinary users will have a set quota, but for p-hailing and e-hailing drivers, the quota will be higher because this is their primary task. We will make that distinction,” he stated.

  Details of the targeted RON 95 subsidy implementation plan are expected to be revealed at the end of September. It has previously been indicated that information from the Pangkalan Data Utama (PADU) socio-economic database will be used as a reference to identify eligible recipients, and the use of MyKad as an identifier for the delivery mechanism has also been mentioned consistently.

   

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• Gov’t in final stages of fine-tuning RON95 fuel subsidy criteria and delivery mechanism – PADU, MyKad, quota

  In Local News / By Anthony Lim / 26 August 2025 10:59 am / 5 comments

  

  The government says it is in the final stages of assessing eligibility and the delivery mechanism for the targeted RON 95 fuel subsidy, with implementation plans for this expected to be revealed at the end of September.

  According to finance minister II Datuk Seri Amir Hamzah Azizan, the main goal was to ensure that those who truly need fuel subsidies continue to receive assistance from the government, The Star reports. “Currently, the government is in the final phase of refining eligibility criteria and the implementation method for the targeted RON 95 petrol subsidies, in consultation with all relevant stakeholders,” he said in parliament.

  “This includes exploring multiple implementation mechanisms, such as testing the use of MyKad, e-wallets, and oil company applications, to ensure the initiative is implemented efficiently and without complicating matters for the rakyat,” he said.

  He said this in reply to Datuk Seri Wee Ka Siong’s (BN-Ayer Hitam) questions on the matter, in which Wee had asked the finance ministry to reveal the indicators and criteria used by the government to determine individuals or households in the T15 category. He also asked the ministry to explain whether the criteria will be based on gross income, disposable income, location of residence, type of vehicle or other data sources.

  

  Amir Hamzah said the information from the Pangkalan Data Utala (PADU) socio-economic database will be used as a reference to determine eligibiility. “PADU centralises data from various government agencies, including the inland revenue board (LHDN), road transport department (JPJ) and national registration department (JPN). This approach is intended to ensure that the targeting is holistic and precise, based on verified and up-to-date data, so that aid reaches only those who are truly eligible,” he said.

  As for the delivery mechanism, he reiterated that it is expected to be based around the use of MyKad, where the card is inserted into a reader at a petrol pump terminal, which then connects to the government’s centralised database to determine eligibility and fuel quota. “If eligible, the (person) can purchase RON 95 petrol at a subsidised price of RM1.99 per litre. If not, they will have to pay the full price at the pump, without subsidy,” he explained.

  He said the MyKad method was also being used for the disbursement of Sumbangan Asas Rahmah (SARA) assistance, where each eligible recipient is automatically registered and receives aid for basic necessities, which can be used to purchase approved essential goods at selected retail stores nationwide using their MyKad.

  

  Wee asked about the measures taken for MyKad misuse, and how unnecessary issues would be avoided if there was a problem with the pump attendant. Amir Hamzah replied that the ministry had discussed the matter with fuel companies to ensure that the method would be simple and that the process for fuel purchase would be automated.

  “When a person arrives at the petrol station, they simply scan their MyKad on the machine. The system will verify their eligibility for subsidised fuel. If they are eligible, they can buy RON 95 at the subsidised price. If not eligible, they can still buy RON 95 but (at) the full, unsubsidised price,’ he said.

  “There will be no intervention needed from the pump attendant; the entire process is automated. If a foreigner tries to buy petrol, since they do not have a MyKad, they will not be able to tap the card. This mechanism helps curb subsidy leakage. By leveraging MyKad and technology, we can effectively reduce leakage,” he added.

  

  He said that the government will set up a public portal to check eligibility for the targeted RON 95 subsidy, along with a contact centre to allow the public to seek assistance, provide feedback or lodge complaints through various channels.

  Amir Hamzah added that the aspect of quota management would be looked into, as it was important. “We must set quotas to prevent misuse. The ministry is carefully considering how to allocate quotas, ensuring that ordinary citizens have enough subsidised fuel, while managing risks of overuse or fraud,” he said.

  He indicated that the rationalisation plan will implement a monthly capped quota based on user type, with higher allocations for e-hailing and p-hailing drivers.

   

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• RON95 subsidy should consider as many factors as possible, or many in M40 could lose out – economist

  In Local News / By Anthony Lim / 25 August 2025 4:08 pm / 11 comments

  

  Earlier this month, the government announced that ownership of property and luxury vehicles, alongside monthly income, would be among the factors in determining eligibility for the targeted RON 95 fuel subsidy, for which implementation plans are expected to be revealed at the end of September.

  While targeted subsidies may help redirect aid to the poorest households, the programme could inadvertently penalise families in the M40 middle-income group unless the country’s structural economic challenges are fully taken into account before finalising the rationalisation criteria, says an economist.

  According to Universiti Teknologi Mara business management faculty senior lecturer Mohamad Idham Md Razak, the move should in theory be beneficial to lower-income B40 households by redirecting finite government resources away from higher-income groups. “This potentially increases the per-capita benefit for those most in need or frees up fiscal space for other pro-poor initiatives,” he said.

  However, there was the worry that many in the M40 group could be unfairly disadvantaged under the new framework. “This cohort often possesses assets such as a single modest property and a family car. These are not luxuries but necessities for economic participation,” he told the New Straits Times.

  “The risk is that these households, already strained by the high cost of living and significant debt obligations, could be wrongly categorised as ineligible. This would effectively reduce their real disposable income and create a new ‘squeezed middle’ at the arbitrary threshold where eligibility ceases,” he said.

  

  Idham said that with stagnant wages, a rising cost of living and high household indebtedness, it was vital that the rationalisation exercise avoid creating inequities between the genuinely affluent and those merely trying to maintain basic living standards.

  He said that incorporating additional factors such as household size, number of dependents and regional cost-of-living variations would strengthen both the fairness and effectiveness of the subsidy programme.

  “From an efficiency standpoint, it ensures the subsidy is directed to those with the highest marginal utility for the money, that is, those who need it most. From an equity standpoint, it acknowledges that a given income provides a vastly different standard of living for a single individual in a rural area compared to a family of five in Kuala Lumpur,” he explained.

  “While layering these factors into the assessment algorithm increases administrative complexity and cost, it is the only method to approach true distributive justice and prevent the unintended exclusion of vulnerable households that the policy ostensibly aims to protect,” he said.

   

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• Luxury vehicle, property ownership to be among added criteria in determining RON95 subsidy eligibility

  In Local News / By Mick Chan / 20 August 2025 10:48 am / 41 comments

  

  Ownership of property and luxury vehicles will be among the additional criteria in determining an individual’s eligibility for the RON95 petrol subsidy, reported Free Malaysia Today.

  Other criteria also includes monthly income, and the government is guided by details from various data sources, said prime minister Datuk Seri Anwar Ibrahim, who is also finance minister, in a written parliamentary reply to former prime minister Datuk Seri Ismail Sabri Yaakob who requested an explanation on how eligible groups would be identified.

  Eligibility will be determined by cross-referencing multiple data sources, including income records from the Inland Revenue Board (LHDN) and household income surveys (HIS) from the Department of Statistics Malaysia (DOSM), The Edge Malaysia reported.

  In July, Anwar announced that the prices of subsidised RON 95 petrol will be reduced to RM1.99 per litre when the targeted subsidy of the fuel begins later this year. Details of the fuel subsidy rationalisation plan are to be announced in September, the prime minister stated in his speech in July.

  

  The finance ministry said that it will work closely with the ministry of domestic trade and cost of living (KPDN) to monitor the stability of fuel prices and to protect the public’s interest once the RON95 subsidy rationalisation is enforced, according to the report.

  The framework will also leverage data from PADU, the government’s socio-economic database, second finance minister Datuk Seri Amir Hamzah Azizan said earlier this month.

  Only non-citizens and those with the financial means to afford unsubsidised fuel will not be eligible for the subsidy, which currently costs the government around RM19 billion a year, the finance ministry stated. The transition from a blanket subsidy to a targeted subsidy system could save the government around RM8 billion a year, the finance ministry said previously.

   

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• RON95 subsidy mechanism unveil by end-Sep – MoF

  In Local News / By Jonathan James Tan / 5 August 2025 10:12 am / 15 comments

  

  The finance ministry (MoF) has said that detailed implementation plans for targeted RON 95 petrol subsidies will be announced by end-September, reports Bernama.

  In a written parliamentary reply to Hulu Langat MP Mohd Sany Hamzan, who asked for an update on the subsidy retargeting implementation, particularly the front- and back-end phases announced by the economy ministry, MoF said the subsidy targeting mechanism is being actively developed and tested to ensure smooth execution upon roll-out.

  “This includes refining data from agencies such as the national registration department (JPN), the road transport department (JPJ) and the department of statistics Malaysia (DoSM). The government aims to adopt a more comprehensive approach to ensure RON 95 subsidies reach the intended target groups,” said MoF.

  

  Under the retargeted subsidy mechanism announced by prime minister Datuk Seri Anwar Ibrahim on July 23, eligible Malaysians can enjoy RON 95 at RM1.99 a litre through MyKad verification. Non-citizens and those ineligible for the subsidy will pay the unsubsidised market rate (Double Petrol‘s rate today is between RM2.61 and RM2.69).

  Yesterday, finance minister II and acting economy minister Datuk Seri Amir Hamzah Azizan revealed that the mechanism will also use data from PADU, which has 30.4 million individual profiles.

  These contain information on demographics, locality, socioeconomics, occupation, income, education, vehicle ownership, ‘poverty status’ (status kemiskinan) and the types of assistance one is receiving.

   

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• Data from PADU will be used for RON95 subsidy rationalisation mechanism, 30.4m profiles – FM II

  In Local News / By Danny Tan / 4 August 2025 4:28 pm / 8 comments

  

  Remember the PADU socio-economic database that was spearheaded by former economy minister Datuk Seri Rafizi Ramli? It wasn’t in vain after all, as data from the Pangkalan Data Utama will be used in the RON95 subsidy rationalisation programme’s mechanism.

  According to finance minister II Datuk Seri Amir Hamzah Azizan, the mechanism that’s being fine-tuned by the MoF will use data from PADU, which has 30.4 million individual profiles. The profiles of Malaysians contain information on demographics, locality, socioeconomic and occupation, income, education, vehicle ownership, ‘poverty status’ (status kemiskinan) and the type of assistance one is receiving.

  “About the implementation of the targeted subsidy, PADU’s data will be used by the MoF as a reference for RON95 subsidy recipients. This is the first use of PADU in a detailed way,” said Amir Hamzah, who is also the acting economy minister after Rafizi resigned in May.

  

  “For now, the government will focus on the use of the latest data to improve the effectiveness of service delivery. For example, confirmation and verification of the applicant’s information to ensure that the recipient is truly qualified, reducing error,” the senator told Dewan Rakyat today, reported by Bernama. He added that from the data in hand, the government can also identify the intervention programmes for target groups.

  Amir Hamzah also shed some light on PADU’s current status. He said that as of now, 204 agencies have shared and integrated their data directly with PADU, with data usage limited to government agencies. To date, there have been nine approved applications to use PADU’s data from various agencies, he added.

  In November 2024, Rafizi revealed that around 55% of households registered on PADU during the first phase, with most coming from lower income groups.

  “Previously, there was an assumption that the M40 group would not receive subsidies. Now, with the government clarifying that only the T15 and above are ineligible and the criteria announced, I think more groups will register. If the public understands that verifying eligibility for RON 95 subsidies relies on data from PADU and they don’t register, they risk being excluded,” the Pandan MP said then.

   

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• RON95 price to be reduced to RM1.99/litre soon for 18 mil rakyat – ultra rich, foreigners to pay around RM2.50

  In Local News / By Anthony Lim / 23 July 2025 11:29 am / 45 comments

  

  In his special speech announcing new measures being undertaken by the government to help ease the burden on the rakyat, prime minister Datuk Seri Anwar Ibrahim revealed that the plan to implement the RON 95 targeted petrol subsidy remains on track, with details of the fuel rationalisation plan to be announced by the end of September 2025.

  More importantly, he said that the majority of Malaysians will not be affected by the move, because the price of RON 95 petrol will actually be reduced when the targeted subsidy of RON 95 petrol begins, with Malaysians set to enjoy a lower RON 95 pump price of RM1.99 per litre.

  “This will certainly benefit around 18 million car drivers and motorcyclists, including youth as young as 16 years old and gig workers. This targeted approach is in line with the government’s efforts to optimise national resources for the benefit of the people, and reduce subsidy waste,” he said in his speech.

  

  He added that in 2023 and 2024, the money the government has spent on RON 95 subsidy alone is estimated to have cost nearly RM20 billion a year, and that though world oil prices have declined this year, the price of RON 95 petrol without subsidy is still around RM2.50 per litre, far higher than the subsidised price people were paying.

  He also reiterated that besides the ultra rich, foreign citizens will also have to pay the unsubsidised market price for RON 95 when the scheme is implemented. No details of the implementation mechanism were revealed, but as reported previously, it is expected that the use of MyKad will be involved in the plan.

  It has to be said, however, that while the new price of RM1.99 per litre for our base fuel sounds like a big reduction, it’s worth remembering that it’s only a six sen decrease from the current price of RM2.05 per litre. To put that into context, filling up RM50 will soon get you 25.13 litres of RON 95, up from 24.39 litres now. Still, every sen counts, so that’s a positive step.

   

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• Targeted RON95 petrol subsidy rollout delayed due to mechanism review to avoid adverse impact on public

  In Local News, Malaysian Fuel Prices / By Mick Chan / 21 July 2025 5:12 pm / 25 comments

  

  The Malaysian government’s plan to implement the RON95 petrol subsidy rationalisation programme has been delayed due to a need for a more detailed review of the mechanism, communications minister Datuk Fahmi Fadzil has said, reported The Star.

  The government is fine-tuning every aspect of the policy to ensure that its implementation will not adversely impact the public, the communications minister said, adding that prime minister Datuk Seri Anwar Ibrahim had addressed the matter with members of parliament during a recent government retreat.

  “The prime minister expressed his view that he does not want the implementation of any policy to negatively affect the majority of the rakyat. It is this process of fine-tuning that has resulted in a slight shift in the timeline,” Fahmi said.

  

  The announcement of the rollout delay comes after second finance minister Datuk Seri Amir Hamzah Azizan said that the RON 95 fuel subsidy rationalisation programme was in the final stages of preparation.

  The plan to rationalise fuel subsidies is part of the government’s reforms aimed at curbing leakages, and to ensure that high-income groups and businesses contribute more fairly to national revenue, the second finance minister had said previously.

  At present, RON 95 petrol has been capped by the Malaysian government since February 2021 at a ceiling price of RM2.05 per litre. Currently, the price of unsubsidised petrol as sold by fuel retailer Double Petrol is RM2.83 per litre as of today, July 21, 2025, or 78 sen per litre higher than the current price cap.

   

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• Gov’t working to ensure RON95 subsidy rationalisation programme won’t result in long queues at the pump

  In Local News / By Anthony Lim / 4 July 2025 12:32 pm / 14 comments

  

  Preparations for the RON 95 petrol subsidy rationalisation programme continue, with the government saying that it is currently working on getting petrol station operators to upgrade their systems to ensure there will be no queues at the pump when the programme – which will utilise MyKad for the necessary verification – is implemented.

  According to second finance minister Datuk Seri Amir Hamzah Azizan, the move will allow the payment system to recognise each customer’s eligibility for the subsidy through his/her MyKad, with the intention being to make the filling process as smooth as it is now, FMT reports.

  “We want to ensure that customers do not experience any significant changes when the fuel subsidy rationalisation takes effect. What we don’t want is for people to have to line up to claim their subsidies when they go to the petrol station as opposed to now when they can complete their transaction in a few minutes,” he said.

  He said he was confident that the government will be able to implement a system – which is likely to be based on a two-tier pricing format – that can be adopted at all petrol stations before the end of the year.

  

  He added that the government’s decision to utilise the MyKad would provide it with an effective mechanism to prevent leakages, citing the successful implementation of the Sumbangan Asas Rahmah (SARA) programme, which had over 5.4 million recipients as of April 1, as an example.

  “More than 4,000 shops already have the SARA system up and running. The amount is loaded through the MyKad system, and the beneficiaries will receive either RM50 or RM100 to shop for essential goods. It’s not beyond reason that we can get the same outcome with the RON 95 targeted subsidy rollout,” he stated.

  Currently, the unsubsidised price of RON 95 as sold by fuel retailer Double Petrol is RM2.58 per litre (July 4), which makes it 53 sen more than the subsidised RM2.05 per litre that has been in place since it was capped by the government in February 2021.

   

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• RON95 petrol subsidy rationalisation paves the way for carbon tax on industries in 2026 – Amir Hamzah

  In Local News / By Gerard Lye / 17 June 2025 3:44 pm / 3 comments

  

  The RON 95 petrol subsidy rationalisation will be the government’s focus this year before a carbon tax is introduced in 2026, according to second finance minister Datuk Seri Amir Hamzah Azizan. First announced during Budget 2025, the carbon tax is not a CO2-based road tax like in other countries, but is targeted at iron and steel, and energy industries, with the revenue being used to fund green research and technology programmes.

  As reported by The Sun, Amir noted that Malaysia must first address the issue of fuel subsidies, particularly those involving the energy sector, before implementing the carbon tax. “As we embark on this transition, we must ensure that no unintended consequences are embedded within our system. For instance, Malaysia has yet to implement a carbon tax as part of its policy framework. While it is scheduled for rollout by 2026, there are important precursor steps we must take,” he said.

  “One major issue is the existing distortions in the system, especially the subsidies provided to the energy sector. A key objective now is to begin scaling back these subsidies. It doesn’t make sense to impose taxes on one side while simultaneously providing subsidies for petrol, diesel and other fuels,” he added.

  Amir also emphasised that subsidy rationalisation is a critical step toward establishing a strong foundation for building sustainable mechanisms and policy frameworks. “As a result, we can expect the introduction of structured measures, including climate action frameworks, robust measurement tools, and ultimately, the implementation of a carbon tax to support these initiatives,” he explained.

  

  “If we want this transition to be sustainable and impactful, the entire system must respond. It cannot be driven by isolated announcements or standalone policies. The challenge for the government is to tie everything together coherently and effectively,” he continued.

  In another related report by NST, Amir explained that market distortions such as blanket subsidies must be addressed before a carbon tax can be implemented. “There are distortions happening within Malaysia’s system today because we have provided blanket subsidies, which is a big issue,” he said.

  “We saw good behavioural change (following the diesel subsidy rationalisation last year). Malaysia was no longer the cheap destination for people to source subsidised fuel for smuggling. We also changed the way diesel is supplied to industries to prevent people from taking fuel meant for the public and using it for commercial operations,” he added

  Yesterday, prime minister Datuk Seri Anwar Ibrahim said the RON 95 petrol subsidy rationalisation programme will proceed as planned, adding that it would not affect 85% to 95% of the population.

   

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• RON95 petrol subsidy rationalisation to proceed, as it will not impact vast majority of people – PM Anwar

  In Local News / By Anthony Lim / 16 June 2025 4:03 pm / 30 comments

  

  Prime minister Datuk Seri Anwar Ibrahim says its RON 95 petrol subsidy rationalisation programme will proceed as planned. He said the government will stand by its decision to implement targeted subsidies for the fuel, as it would impact only a few, The Star reports.

  “There is no issue of raising the price of petrol for the vast majority of up to 85% to 95% of our people. Will we do it? Yes, because subsidy rationalisation is critical for our nation. We want sufficient resources to help the poor, enhance education quality, and provide better public services, including health,” he said.

  He criticised the opposition for creating a negative narrative about the government’s plan for RON 95. “Whatever the opposition says is just a desperate gimmick to show that people are facing hardship. There is more negative news from them when we need encouraging news to propel our economy,” he said.

  The PM’s statement comes in the wake of a more than 9% increase in global crude oil prices following the Israel-Iran conflict. Asked if the conflict and resulting rising global crude oil prices would affect the nation’s economy and government coffers, he told reporters it would not have an adverse impact for now.

  

  “For now, I have discussed this with the secretary-general of the Organization of the Petroleum Exporting Countries (OPEC) and leading players. They are monitoring the situation very closely, but it does not necessarily affect the industry and price mechanism adversely,” he said.

  There is still no indication as to exactly when the RON 95 rationalisation programme will be implemented, but In May, second finance minister Datuk Seri Amir Hamzah Azizan indicated that it will be rolled out in the second half of this year.

  As of now, no concrete details of qualification levels (below T5, T10 or T15) have been revealed, and neither has the exact mechanism for the programme, but Amir Hamzah has said that the latter is likely to be based on a two-tier pricing system with both subsidised and non-subsidised prices, with MyKad determining things.

  Incidentally, the unsubsidised price of RON 95 as sold by fuel retailer Double Petrol is RM2.59 per litre (today, June 16), which makes it 54 sen more than the subsidised RM2.05 per litre that has been in place since it was capped by the government in February 2021.

   

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• Government should not delay the implementation of RON95 petrol subsidy rationalisation, say economists

  In Local News / By Anthony Lim / 16 June 2025 3:19 pm / 8 comments

  

  Economists say that the government should proceed with the implementation of its planned RON 95 petrol subsidy rationalisation despite the recent spike in global oil prices brought about by escalating tensions in the Middle East, The Star reports.

  According to Sunway University economics professor Yeah Kim Leng, implementing the programme without delay will allow the burden of rising oil prices to be shared with consumers and businesses while preventing a ballooning subsidy burden to the nearly RM100 billion incurred in 2020 during the Covid-19 pandemic.

  He said that unless absorbed by the government, higher global oil prices would lead to increased pump prices, putting pressure on national finances. “This would require the government to cut other expenditures or incur a higher fiscal deficit, which will further raise the country’s debt level,” he said, while suggesting that the rollout be accomplished in gradual fashion.

  Echoing that sentiment was economist Geoffrey Williams, who said that higher oil prices would widen the gap between market prices and retail pump prices, increasing the government’s subsidy burden. He added that the government would save at least RM8 billion or more once it was in place, saving that can be redirected to critical areas such as healthcare, education and social protection.

  He said that the rationalisation of diesel and electricity subsidies, which raised RM11.5 billion without triggering hostile market or public reaction. “The government must push through with targeted subsidies now. There is no better time and any delay will signal weakness and damage credibility,” he said.

  

  Elsewhere, Associated Chinese Chambers of Commerce and Industry of Malaysia treasurer-general Datuk Koong Lin Loong agreed that any delay could significantly increase the government’s subsidy bill if oil prices continue to rise. However, he said a phased implementation was necessary.

  “This is to avoid a sudden shock to the nation’s economy, which is already grappling with the current geopolitical uncertainties,” he said. He also called for the Price Control and Anti-Profiteering Unit to be strengthened to prevent businesses from arbitrarily raising prices, potentially driving up inflation.

  Meanwhile, Federation of Malaysian Business Associations vice-chairman Nivas Ragavan stated that the timing of the rollout is crucial. “Volatile oil prices can exacerbate the burden on the rakyat if not carefully managed, but a sudden implementation during a price spike could be highly inflationary and politically sensitive,” he said.

  Earlier this month, the Petrol Dealers Association of Malaysia (PDAM) urged the government to delay introducing the RON 95 petrol subsidy rationalisation plan until critical industry issues were resolved.

  Incidentally, the unsubsidised price of RON 95 as sold by fuel retailer Double Petrol is RM2.59 per litre (today, June 16), which makes it 54 sen more than the subsidised RM2.05 per litre that has been in place since it was capped by the government in February 2021.

   

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• Gov’t should delay RON95 subsidy rationalisation until dealer margin, MDR issues resolved, says PDAM

  In Local News / By Gerard Lye / 3 June 2025 12:38 pm / 13 comments

  

  The Petrol Dealers Association of Malaysia (PDAM) has urged the government to delay introducing the RON 95 petrol subsidy rationalisation plan until critical industry issues are resolved, reports FMT.

  PDAM president Khairul Annuar Abdul Aziz said dealer margins, which are fixed under the automatic pricing mechanism (APM), had not been revised since 2019 and no longer reflected current operating costs. Additionally, he voiced concern over the merchant discount rate (MDR) imposed on card payments, which increases as fuel prices rise but leaves dealers’ per-litre commissions untouched.

  “Without a margin revision, small and medium-volume station operators will face losses from the very first day of the RON 95 subsidy rationalisation implementation. And as pump prices increase under the rationalisation, the MDR rises accordingly, but dealer commissions remain static, resulting in a further erosion of margins,” he said in a statement. PDAM represents over 4,000 petrol stations nationwide and had previously voiced similar concerns last year (Facebook post attached below).

  The RON 95 petrol subsidy rationalisation plan is set to be implemented in the second half of 2025, as revealed by second finance minister Datuk Seri Amir Hamzah Azizan a few days ago. A few days before that, former economic minister Rafizi Ramli said the plan had been fully handed over to the finance ministry.

   

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• Rafizi Ramli resigns as economic minister – so what happens to RON95 targeted subsidies and PADU now?

  In Local News / By Mick Chan / 28 May 2025 3:47 pm / 18 comments

  

  Datuk Seri Rafizi Ramli has resigned from his position as the minister of economy of Malaysia, following his loss in the recent PKR party election for the position of deputy president to Nurul Izzah Anwar.

  “I have submitted my resignation letter to the prime minister. My defeat in the recent PKR election means I no longer have the party’s mandate to translate the people’s agenda, as championed by PKR, into government programmes,” Rafizi said in a statement.

  The Pandan member of parliament added that his resignation from the economy minister post will take effect on June 17, and he will take the remainder of his annual leave from today until June 16.

  During Rafizi’s tenure as economy minister, the ministry launched the Pangkalan Data Utama (PADU) socio-economic database in January 2024. Initially defined as a key component in determining how subsidies and financial assistance were re-targeted, the database – which cost RM85 million to implement – was utilised for the rationalisation of diesel subsidies in June 2024, but has since largely gone off the radar.

  

  Despite Rafizi having stated last November that there would be a second phase of registration for PADU in preparation for the implementation of the targeted RON 95 petrol subsidy, the government’s decision to go with MyKad in the planned implementation likely means that PADU no longer plays a key role in defining how targeted petrol subsidy will be dispensed.

  On May 19, Rafizi announced that the RON 95 petrol subsidy rationalisation plan had been fully handed over to the finance ministry, and that the MoF would be managing the entire RON 95 subsidy process from now on.

  Earlier this week, second finance minister Datuk Seri Amir Hamzah Azizan said that the RON 95 subsidy rationalisation will be rolled out in the second half of this year as planned. Prime minister Datuk Seri Anwar Ibrahim has however said that the majority of the rakyat will not be affected by the move, and that only a select few (which Anwar was said to have mentioned as the 5% ultra rich) and foreigners would be paying more for RON 95.

   

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• Gov’t will implement RON95 subsidy rationalisation as planned, second half of 2025 roll-out – Amir Hamzah

  In Local News / By Danny Tan / 26 May 2025 6:04 pm / 38 comments

  

  The Madani government will implement the RON 95 subsidy rationalisation as planned, and it will be rolled out in the second half of this year, second finance minister Datuk Seri Amir Hamzah Azizan said.

  The senator said that discussions about RON 95 subsidy rationalisation are still ongoing at the cabinet level to detail the best mechanism for a full roll-out that’s fair to the rakyat, BH reported.

  “The prime minister (Datuk Seri Anwar Ibrahim) and the cabinet have discussed, where we will raise the eligibility level to receive subsidies. The second thing is the mechanism that will be used – as announced by the PM, we will use the identity card, and every Malaysian citizen has one,” he said after officiating the MIA International Accountants Conference 2025 in KL today.

  

  Amir Hamzah reiterated that MyKad is the way to go. “We have already used the identity card for the SARA (Sumbangan Asas Rahmah) scheme, and it works. So for now, the finance ministry is tightening the system so that we can use it for RON 95 subsidy implementation,” he added.

  This comes after the PM was quoted as saying that the government guarantees that the price of RON 95 will not be raised for the rakyat, although the matter was discussed by the cabinet. Anwar said that there was a push for the RON 95 price to be raised, but he did not agree with the proposal.

  “I’m thinking of the RON 95 petrol subsidy issue. Some have asked for the price to be increased for the rakyat. However, I don’t agree. If it is to be done, RON 95 price adjustment (the amount of subsidy) has to go down bit by bit according to timing and market price,” the PKR president said in his winding up at the party’s congress in Johor over the weekend.

  

  However, foreigners will have to pay more for fuel. “Foreigners enjoy RM3-4 billion in subsidies. Maybe after this, to buy RON 95 petrol, one will have to show his identity card,” Anwar said, stressing that the pump price for around four million foreigners in Malaysia has to be raised.

  So, looks like it’s still on, and when the PM mentions rakyat, it excludes the T15s – we should’ve known, because in his books, those are the ‘maha kaya’. In any case, RON 95 subsidy rationalisation is no longer under the economy ministry and Datuk Seri Rafizi Ramli, and the MoF is in charge now.

   

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