Prime Minister Datuk Seri Anwar Ibrahim announced on 23 July 2025 (Wednesday) that the retail price of RON95 petrol will be reduced to RM1.99 per litre for eligible Malaysians, as part of the MADANI government’s move to implement a targeted fuel subsidy. This marks a reduction from the current subsidised rate of RM2.05 per litre, which has been in place since February 2021.

The new targeted subsidy system is expected to benefit over 18 million local motorists, including youths aged 16 and above as well as gig economy workers.

Anwar assured that Malaysian citizens will not be affected by the shift in subsidy policy and that only ineligible groups – such as foreign nationals and vehicles not registered in Malaysia – will be required to pay the full market price for RON95.

Preventing subsidy leakage through targeted petrol subsidies

“This approach reflects the government’s commitment to optimising national resources while minimising subsidy leakage,” said Anwar, adding that the initiative is a gesture of appreciation for Malaysians who have continuously supported the government’s reform agenda.

Detailed announcements by the end of September

While the exact implementation timeline and further details were not disclosed, Anwar stated that more comprehensive announcements will be made by the end of September 2025.

An announcement of appreciation for Malaysians’ support towards the MADANI government

According to Bernama, Prime Minister Anwar Ibrahim made the announcement of appreciation for Malaysians as a reflection of thew MADANI government’s concern for the people who have supported the reformation.

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