PM Anwar rules out RON95 price hike, signals targeted subsidies for non-Malaysians

JOHOR BARU, May 24 — Prime Minister Datuk Seri Anwar Ibrahim has assured that the government will not raise the price of RON95 petrol.

He said he did not agree with a recent Cabinet proposal to increase the price of the popular subsidised petrol that was presented to him.

“There was an initial proposal to raise fuel prices and then give out aid. I and the Cabinet disagreed with that proposal — we do not agree with raising fuel prices.

“Fuel prices can be reduced gradually depending on current market conditions,” he said in his capacity as PKR president at the party’s national congress held at the Persada Johor International Convention Centre here today.

However, Anwar said the price of RON95 petrol for the estimated four million foreigners in Malaysia needs to be increased.

“What’s wrong with implementing targeted subsidies for foreigners?

“Foreigners with vehicles account for an estimated RM3 to RM4 billion in subsidies that we’re giving out.

“So if we withdraw the subsidies, then anyone buying fuel would have to show their IC — or there will be other methods that will be detailed later,” he said.

On October 18, when tabling the 2025 Budget, Anwar touched on targeting the RON95 petrol subsidy, which is expected to be implemented mid-year.

Anwar, who is also the finance minister, said the proposal indicates the government could save up to RM8 billion from the 40 per cent RON95 petrol subsidy currently enjoyed by the country’s top 20 per cent income earners (T-20).

He added that the savings will be used for the well-being of the majority, financing the development of education, health, and public transport facilities nationwide.

Anwar also stressed that Malaysians should not have mixed feelings about the government’s approach, which aims to protect the interests of the majority.

He said there is no country in the world that provides petrol subsidies to top income earners and the super-rich, including those owning rows of luxury cars.

The prime minister also assured that gas and liquefied natural gas (LNG) subsidies would be reviewed.

He said the government would address the issue, while urging a review of the e-Invoice system linked to national revenue.

In a related matter, Anwar reprimanded PKR for raising the issue of electricity subsidies.

He said the proposal was weak, to the point that the public failed to understand the government’s intentions.