Rafizi Says RON95 Subsidy Criteria To Be Announced Soon

Economy Minister Rafizi Ramli is indicating that the eligibility criteria and implementation details for the RON 95 subsidy will be announced soon.

"The Economy Ministry and Finance Ministry will bring the proposal of the mechanism and eligibility to Cabinet for approval, and as we progress, we will communicate to the public as soon as possible. Given that the timeline is in a few months, and this is already January, some of these announcements have to be made progressively going forward," Rafizi stated. 

Rafizi will also be revealing the transition from net disposable income in the form of B40, M40, and T20 categories, to an assessment based on net disposable income. This change aims to provide a more accurate representation of an individual's financial capacity, ensuring that the subsidy feels fair for the public.

"We have informed the proposal of policy changes, but the Cabinet's decision has to be official so we can proceed to the next steps,"  he added.



For a refresher, the targeted subsidy will encompass up to 85% of Malaysian households, ensuring that the majority continue to benefit from subsidized fuel prices. The top 15% of earners, often referred to as the T15, however will pay more for petrol, according to PM Datuk Seri Anwar Ibrahim during the announcement of Budget 2025. Anwar also noted that the targeted subsidy plan could save up to RM8 billion annually, as the wealthiest individuals, foreign nationals, and businesses, which constitutes 15% of petrol consumers, currently consume 40% of the RON95 subsidy.

Rafizi expressed concern that the proposed levy system last year for the RON95 subsidy may risk seeing some of the poorest households being ineligible for the subsidy. This is due to 40% of these households not having their cars being registered under their own names. 



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Read More: Government has no intentions on offering RON 95 Petrol Subsidy to Non-Citizen Owned Vehicles.

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