The government will roll out a targeted petrol subsidy program for RON95 by mid-2025, aiming to make fuel subsidies more efficient and fair.
Under this new system, 85% of Malaysians—those who fall within specific income brackets—will continue to benefit from subsidized fuel prices.
The subsidy aims to reduce government spending on blanket subsidies by focusing on low- and middle-income households rather than offering the same benefit to all residents, including higher-income groups.
This approach ensures that only eligible individuals enjoy lower fuel prices, aligning with efforts to address economic disparities and prevent subsidy misuse.
Meanwhile, the remaining 15% of the population, typically high-income earners, will pay market prices for RON95 petrol. This change reflects the government’s broader economic strategy to reduce fiscal burdens while still safeguarding the majority from price hikes, ensuring affordable fuel access for most citizens.
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