Foreigners and certain commercial vehicles in Malaysia will soon have to pay the full market price for RON95 petrol, following the government’s plan to implement an automatic pricing mechanism (APM).
Finance Minister II Datuk Seri Amir Hamzah Azizan said the decision will be finalised by the end of this month, with prices adjusted weekly after a monitoring period.
“For non-Malaysians and non-eligible commercial vehicles, the RON95 petrol price will be based on the automatic pricing mechanism, which we will decide at the end of this month.
“And just like what we did with the diesel subsidy, we will monitor the price for several months, and the price will then change weekly,” he told reporters at a media briefing.
Currently, the unsubsidised price under APM is RM2.90 per litre, but the government is expected to set it slightly lower at around RM2.60 per litre for foreigners, still higher than the subsidised rate of RM1.99 for eligible Malaysians, reported NST.
Why the change is happening
The move follows the launch of Budi 95, a new subsidy initiative announced earlier this week that aims to ensure only Malaysians benefit from cheaper RON95 fuel.
Previously, subsidies were open to anyone buying RON95 petrol, meaning foreign motorists and large companies could enjoy the same low price as everyday Malaysians. This resulted in what the government calls “leakages”, subsidies meant for locals being used by non-citizens.
By tying the subsidy to MyKad verification, the government hopes to:
- Cut wastage from non-eligible buyers
- Save public funds for targeted subsidies
- Curb smuggling of cheap Malaysian fuel across borders
How Malaysians will get the subsidy
Under Budi 95, Malaysians with a valid MyKad and driving licence can purchase RON95 at RM1.99 per litre by verifying their identity at the petrol pump or counter.
The process is simple:
- Insert MyKad at the pump or show it at the counter
- Pump as usual — the system automatically charges the subsidised rate
- Pay using cash or card — no extra steps needed
This method, Amir Hamzah said, has been proven effective in other government assistance programs such as Sumbangan Tunai Rahmah (STR).
Will there be limits on subsidised fuel?
Yes, possibly.
The Finance Minister revealed the government is still refining the system and may introduce daily purchase limits for subsidised RON95 to prevent abuse.
This follows reports of Singaporean motorists expressing excitement online at the thought of buying cheaper RON95 fuel in Malaysia, prompting concerns about potential exploitation of the subsidy system.
Current rules for foreign vehicles remain
Amir Hamzah confirmed that the existing ban on foreign-registered vehicles buying RON95 remains unchanged. Such vehicles must continue using RON97 or unsubsidised fuel, not the RM1.99 subsidised option for Malaysians.
